Calgary housing affordability improves, still trails other Alberta markets: report

New data on housing in Calgary has the city pegged at 23rd most affordable in Canada. Mason DePatie reports.

A new Royal LePage analysis shows that buying a home in Calgary is becoming more affordable, although the city remains less affordable than other Alberta markets.

The new data, released on Tuesday, found that a typical Calgary household now spends 38.4 per cent of its income on an average mortgage, down from 44.1 per cent in 2024.

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This notable improvement in affordability occurred even though home prices remain high.

Royal LePage reports the average home price in Calgary was $689,100 in the first quarter of 2026. With a three-year fixed mortgage rate of 4.64 per cent and a 25-year amortization, the estimated monthly payment is $3,094.

Despite improved affordability, Calgary did not place among Canada’s 15 most affordable housing markets, instead ranking 23.

Alberta’s strongest showing came from Lethbridge, which ranked as the most affordable city in the country. Red Deer placed fourth, while Edmonton ranked seventh.

The report measured affordability as the percentage of household income needed to cover a monthly mortgage payment.

Alberta continues to attract attention from out-of-province buyers

The analysis also indicates that Alberta continues to attract Canadians from the country’s most expensive housing markets.

Among respondents in the Greater Toronto Area and Greater Vancouver, Edmonton was the top choice for those considering relocation to a more affordable city if local or remote work was available.

“Home prices in Canada’s largest cities have moderated over the past couple of years, but for many buyers, the math still doesn’t work,” said Royal LePage president and CEO Phil Soper.

“As barriers to entry remain high in the country’s most expensive urban centres, relocating to a more affordable city is becoming less of a last resort and more of a deliberate strategy.”

The report found that 61 of 62 Canadian cities saw improved affordability between 2024 and 2026. Calgary’s reduction in the income share needed for a mortgage was among the largest improvements nationally.

Royal LePage attributes this shift to stabilizing home prices and continued income growth, which have helped narrow the gap between earnings and housing cost.