The landscape of Calgary's housing market has undergone a dramatic transformation, leaving first-time buyers grappling with significantly reduced purchasing power. A new report highlights this shift, revealing what half a million dollars can secure in today's market compared to just a few years ago.
The Rising Cost of Homeownership
In January 2020, $500,000 represented the benchmark price for a single-family detached home in Calgary. Fast forward to January 2026, and that benchmark has soared to $724,000, marking an increase of over 40% in six years. This surge has effectively priced many first-time buyers out of the single-family home segment, which was once their preferred choice.
Raj Sandhu, a Calgary-based realtor with HouseSigma Inc., emphasizes that $500,000 is now "basically the entry point for a first-time homebuyer." He notes that this sum typically affords buyers a "nice" townhome, rather than a detached house.
What $500,000 Buys Today
The report details specific examples of properties available at this price point:
- A townhome approximately 10 to 20 years old, such as a recent listing in Royal Oak in the Northwest, featuring two bedrooms and two full bathrooms.
- In the northeast, a 1,000-square-foot, two-bedroom bungalow built in the 1980s, though these are rare and often in poor condition.
Nevin Jones with Re/Max Complete Realty explains that these older bungalows often come with large lots, making them prime targets for infill development. He points out that at the end of January, only 79 detached homes were listed under $500,000, with 58 sales in that range, accounting for less than nine percent of all single-family detached home sales.
The Premium on Land
HouseSigma's analysis reveals that the higher cost per square foot for these bungalows compared to central condominiums is driven by land value. "These listings are often tiny homes on large lots," Jones says, where the lot itself commands a premium over the dwelling.
Market Trends and Buyer Adaptation
With single-family homes increasingly out of reach, first-time buyers are turning to more affordable options. The benchmark price for townhomes in January was $421,000, and Calgary Real Estate Board statistics show that 93% of all row home activity occurred below $500,000.
This shift underscores a broader trend in Calgary's housing market, where rising prices have reshaped buyer behavior and availability. As Sandhu concludes, the dream of a detached starter home is fading for many, replaced by the reality of townhomes and older properties in need of renovation.
