Edmonton’s new home market poised for a big 2023

The Alberta Advantage in the last few years may not be as lustrous as it was in the early part of the new millennium, but it’s fair to say it’s got a bit of the swagger back and the Edmonton new home industry looks to gain from it in 2023.

Economic experts are optimistic about Alberta’s prospects for an even stronger 2023, despite headwinds brought about by higher interest rates and continued inflation.

For one thing, experts agree that the Alberta Advantage these days is different from what it had been when oil and gas was the sole source of its economic prowess. Today, it is more diversified with the growth of more industries, like technology, manufacturing, and logistics.

Edmonton’s new home industry is particularly well positioned to reap the benefits, as homes here remain more affordable than in Toronto or Vancouver, or even Calgary.

Strong in-migration numbers reflect the desire to call Alberta home, as more people from other parts of the country and the world are attracted to the relative affordability and balanced lifestyle it offers.

Attracting migrants

According to the Alberta Real Estate Association (AREA), some 37,122 people moved to Alberta from other provinces in the second quarter of 2022. This was up 87.7 percent from a year earlier. There were significantly more people moving to Alberta from British Columbia and Ontario compared to the second quarter of 2021.

A total of 27,265 people did leave the province for elsewhere in Canada in the second quarter, an increase of 12.9 percent from the same period in 2021. This leaves a net gain of 9,857 people to Alberta’s population in the second quarter, a stark reversal from a year earlier of the net loss of 4,370 people from the same period of 2021, the AREA report says.

Meanwhile, international immigration added a record 25,026 people to Alberta’s population in the second quarter of 2022. This was an increase of 361.8 percent from the same period in 2021 and marked the first time in history that net international immigration surpassed 20,000 people, the AREA report adds.

In metro Edmonton itself, the current population in 2022 is 1,519,000, a 1.88 percent increase from 2021. It is a continuation of a trend that has seen the metro area population of Edmonton grow by 2.05 percent in 2021 from the year prior.

Affordability is key

What is attracting the majority of the newcomers is the relative affordability of housing in Alberta, particularly in Edmonton.
“Affordability throughout Alberta remains strong, homes cost half of what they have in BC and Ontario,” BILD Alberta Chairman Dhruv Gupta tells Edmonton New Home + Condo Guide. Edmonton is particularly attractive and is even more affordable than Calgary, he adds.

“Relatively higher wages in Alberta also promise newcomers a better life,” says Gupta. He is also the president of Akash Homes, that builds in Edmonton, Calgary and Fort McMurray.

Edmonton is one of the most affordable Canadian big cities to find a home, according to real estate research website Wowa.ca. Its recent report says Edmonton housing prices increased only 13 percent over the past 15 years, even as official inflation for this period was at 32 percent.

It says the average home sold price in the Greater Edmonton Area was $381,451 in October 2022, which shows a 1.1 percent year-over-year increase. It adds that a single-family detached home in Edmonton had an average sale price of $469,000 for September 2022, which is a 1 percent annual increase and a 1.2 percent monthly decrease.

New communities offer lifestyle choice

Gupta says the growth of new communities in the metro Edmonton area provides plenty of opportunities for newcomers to find a home and a place to plant their roots.

He adds that the recent completion of Anthony Henday Drive that encircles the city has been key in spurring the growth of these new communities. “The Henday just makes everything more accessible.”

On top of the historical high growth in areas like the SE and the SW, the west and NE side of the city are enjoying more pronounced growth now, he says.

Qualico Communities is particularly active in the West with its Uplands at Riverview community and its newest, Rivers Edge. Both rely on the wonderful amenities available in the area to attract new homebuyers.

Rohit Land Development has also introduced the new West community of Woodhaven Pointe, which is part of the greater Woodhaven Edgemont area. Surrounded by nature, Woodhaven Pointe is an enclave within this community, a sanctuary completely surrounded by greenspace with no through traffic, consisting of 61 single family lots.

The bonus is that these communities are centrally located within West Edmonton and their proximity to Anthony Henday Drive give both easy access to all the amenities the area has to offer and beyond.

In the Northeast, Crystallina Nera by Genstar and Citadel by Hopewell Residential are among the best-selling young communities.
Excel Homes is one of the most prolific builders in Edmonton and they are optimistic for 2023. “We have big plans in Edmonton and Calgary, it is our 25th anniversary and we will have lots to look forward to with new home designs next year,” Excel Homes Marketing Manager, Kristina Plank, says.

In October, Excel Homes opened double front-attached garages duplex show homes in Citadel in the northeast, which just shows the exciting innovations in home design builders can offer homebuyers.