The multifamily real estate market in Calgary provides a special fusion of long-term growth, affordability, rental demand, and economic stability. Multifamily houses fit the bill whether you're looking for cash flow, appreciation, or a live-in investment.
Those that invest now stand to gain the most as interest in the city keeps growing.
Calgary is a rising star in the constantly changing Canadian real estate market, particularly in the multifamily housing market. Multifamily homes in Calgary present an alluring prospect for both seasoned investors and first-time buyers wishing to accumulate long-term wealth because of the city's solid economic foundations, population expansion, and investor-friendly environment.
Here are several reasons why Calgary's multifamily market merits your consideration, whether you're a homeowner contemplating house hacking or an investor contemplating your next purchase.
1. A City with Economic Momentum
Calgary has evolved beyond its oil and gas industry.
The city has greatly expanded during the last ten years into:
- Innovation and technology (One of Canada's fastest-growing IT clusters is located in Calgary.)
- Services related to finance
- Manufacturing and logistics
Clean energy
The employment market has become more resilient and stable as a result of this economic transformation, drawing in young professionals and talented workers from all over the nation, many of whom are renters searching for reasonably priced, conveniently situated accommodation.
2. Strong Population Growth and Migration
In terms of population growth and net migration, Calgary routinely ranks among Canada's top cities.
Based on the most recent municipal data:
- Interprovincial migration to Alberta is at an all-time high.
- Over the next 20 years, Calgary's population is predicted to increase by more than 30%.
This rise in population raises demand for rental properties, especially multifamily homes, which are viewed as practical and reasonably priced housing options for professionals, young families, and students.
3. Affordability Compared to Other Major Cities
Calgary real estate, particularly multifamily properties, is still very reasonably priced when compared to Vancouver or Toronto.
This means the following for investors:
- Entry points that are lower
- Greater potential for cash flow
- Improved cap rates (often between 5 and 6%, as opposed to 2-3% in overheated markets)
In summary, Calgary provides small-market affordability along with big-city rewards, which is uncommon in Canadian real estate.
4. High Demand for Rental Housing
Calgary's rental market has become much more competitive, according to CMHC:
- Low rates of vacancy (about 1% to 2% in important neighborhoods)
- Annual increases in rental costs
Particularly sought-after are multifamily properties such as apartment buildings, duplexes, triplexes, and fourplexes. This is fueled by buyers' need for flexible living arrangements as well as their budget dilemma.
Investors in multifamily properties gain from:
- Several sources of revenue from a single property
- Reduced operating and maintenance expenses per unit
Resilience in times of economic recession (when renters move from single-family homes to more reasonably priced options)
5. Favorable Zoning and Development Potential
The recent campaign for upzoning in inner-city districts is only one example of Calgary's progressive zoning rules.
This makes room for:
- Secondary suites and laneway housing
- Unit additions to already-existing properties
- Converting vacant lots into multifamily structures
This translates into greater flexibility and higher property values through densification or redevelopment for long-term investors.
6. House-Hacking Potential
House-hackers, or owner-occupants who live in one unit of a multifamily home while renting out the other units to pay off their mortgage, love Calgary.
Why it's so successful in Calgary:
- Family-friendly, transit-accessible neighborhoods are home to a large number of duplexes and fourplexes.
- Units are rarely left unoccupied due to the high demand for rentals.
In Canada, rental income is frequently taken into account by mortgage lenders when determining your qualifying income, which facilitates financing larger properties.
This is an effective wealth-building tactic, especially for young professionals or first-time homebuyers who wish to quickly begin accumulating equity.
7. Long-Term Appreciation and Equity Growth
Calgary delivers consistent, sustainable growth, which is a quality that gains value in a market with high interest rates, even though it might not have the rapid appreciation of Vancouver or Toronto.
The following are important factors that influence appreciation:
- Initiatives for urban renewal
- Investments in infrastructure (such as the extension of the Green Line LRT)
- Policies that support business and growth
When paired with rental income, multifamily houses offer both cash flow and equity increase over time, making them a dual-benefit investment.
8. Lower Risk Through Diversification
Diversification is inherent in multifamily dwellings. In contrast to single-family rental properties, when a single vacancy results in no revenue, multifamily homes:
- Distribute the risk among multiple tenants.
- Provide more dependable sources of revenue.
- Make renovations simpler by allowing for unit-by-unit turnover.
This is a huge benefit for investors who are risk-averse or cautious, particularly during uncertain economic times.
9. Tax Advantages and Depreciation Benefits
The variety of tax advantages offered to investors is one of the less well-known but significant features of multifamily real estate.
Owners of assets that generate revenue in Calgary (and across Canada) can:
- Reduce taxable income by depreciating the building utilizing the Capital Cost Allowance (CCA).
- Deduct running costs including upkeep, insurance, property management fees, and mortgage interest.
- Add the costs of improvements and renovations to the property's adjusted cost base as capital expenditures.
With the help of these tax methods, you can postpone large tax obligations over time and optimize returns, particularly in multifamily arrangements with substantial cash flow.
10. Strong Community and Lifestyle Appeal
In addition to being a major economic center, Calgary is a very livable city that keeps drawing professionals, families, and students.
What attracts tenants to Calgary:
- Being close to the Rockies, Banff, and Kananaskis
- A good standard of living at a comparatively low cost of living
- Respectable educational institutions, medical centers, and universities (such as the University of Calgary)
- A thriving downtown and expanding cultural landscape
This lifestyle attraction is tapped by multifamily properties in well-connected communities like Beltline, Inglewood, or Mount Pleasant, which makes it simpler to rent and keep long-term tenants.