Faulkner: What's trending in Edmonton real estate?

New builds offer homeowners a chance to wait a while before needing to renovate or fix roofs.

Published Jul 25, 2024  •  Last updated 7 hours ago  •  3 minute read

A new home defers maintenance expenses. Photo by Sean Kilpatrick /The Canadian Press

Over the past four years, property values in Edmonton have been creeping up. This is mainly due to the record demand for housing from interprovincial immigration.

Rental rates are up, and suitable rental properties are harder to find than they were two or three years ago.

This increase in housing demand has resulted in more buyers snapping up condos and newer, more efficient homes to manage home ownership affordability and general inflation.

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Apartment condos in Edmonton remain a very affordable option relative to other property types and compared to many other regions in Canada. Since 2007, apartment condo values have either remained flat or decreased. One could purchase three condos for one detached home.

The value of condos has started to recover in the last two years.

The townhome condo has become our region’s most desired property type. It offers a living space with no one above or below you. It is also significantly more affordable than single-family homes.

Many townhomes include a garage, a fenced backyard for pets, and a basement for storage or extra living space. Condo fees typically cover exterior maintenance, snow removal, and lawn maintenance, making homeownership more carefree.

Rowhomes are also trending as they are more affordable than single-family detached homes. The rowhome, unlike a townhome, is not a condo. They can look very similar; however, they will always face a city street as they are not on condominium-owned land.

Rowhomes have been growing in popularity lately. Because they require less land and are attached to three or more other rowhomes, they are more affordable than a detached home. Most rowhomes will include a detached garage.

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Many rowhomes are designed to have an income suite, making these property types even more desirable and affordable.

Eight years ago, Edmonton’s core was one of the most desired locations in our region. Since then, we have seen shifts in demand for homes in the burbs.

There are a few reasons for this shift. The Anthony Henday was completed in 2016, which means we have a ring road all around Edmonton. Commuting to the suburbs in Edmonton is now quicker and more convenient.

Homes in the burbs around the Henday ring are newer and more energy-efficient than a typical home in Edmonton’s core. This efficiency can make a big difference in your monthly utility costs.

Buying a newer home in the burbs can defer maintenance costs. It may be several years before a homeowner has to replace the roof, windows, fencing, grade the property or perform any foundation work.

Many buyers have busy lives and may not want to renovate after their move. Buying a newer home likely means they can move in and return to regular life immediately.

Another trend we notice is a greater demand for secondary suites for income and multi-generational living. Having aging parents close who may need a little assistance or parents who can help with child-rearing can be of great advantage, not to mention reducing living costs for everyone.

Having an income suite can be a huge mortgage helper, which will help compensate for the continued inflation we are all experiencing.

Whichever property type one decides is the best fit, Edmonton offers much more bang for your buck in housing than any other major centre in Canada.

Dennis Faulkner, B.A. Economics, works as a realtor at MaxWell Challenge Realty. He can be contacted to answer your real estate questions at [email protected]

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