CMHC stats show that Calgary has the highest percentage of people that own their homes in Canada at 72.4 percent. The national average is 69 percent. Why do you think Calgarians lead the way in this category?
There are many factors that are contributing to the higher than average home ownership percentage in Calgary, all of which stem from its economic position in the country.
The first factor is affordability, based on ownership cost as a percentage of average income. Calgary’s average income is higher than other cities in the country and therefore, despite the increase in property values, the Calgary Affordability Index (as measured by RBC) shows that property ownership is still one of the cheapest in Canada.
The second factor is the tremendously low Alberta vacancy rate and the correlated strong rental increase throughout the city. This is driving purchase choices sooner than is traditional. It is cheaper for many to purchase (when measured on a monthly payment basis), PLUS it is becoming easier to find a home to buy than to find a home to rent.
The third factor is strong consumer confidence. The confidence in the sustainability of peoples jobs, the lower income tax rate (thus more take home pay), and the higher than average weekly earnings is supporting the decision to buy, rather than rent.
Don R. Campbell