A recent study by Zoocasa reveals that Calgary homeowners who purchased property in 2020 have achieved the highest returns on investment among major Canadian housing markets. The report indicates that these homeowners earned an average of $49,700 per $100,000 of invested equity over the past five years.
Exceptional Returns on Initial Investment
For a buyer who made a five percent minimum down payment of $21,150 on the average-priced Calgary home in May 2020, the equity gain now stands at approximately $210,000. This represents a return of 994 percent on that initial investment. Ashliegh Griffiths, a Calgary real estate agent with eXp Realty, notes, "The report highlights the different potential return on investment when purchasing in different markets like Toronto and Vancouver. It really illustrates that buying in Calgary has proven a smart financial decision."
Market Performance Details
In 2020, the average home price in Calgary was about $423,000. According to Calgary Real Estate Board (CREB) statistics from mid-April, the current average price is approximately $661,000. Overall, all Calgary buyers have seen an average price increase of more than 55 percent over the past five years, based on CREB data.
Comparison with Other Markets
The Zoocasa study examined all major Canadian centers. Greater Vancouver buyers saw the least return, at $16,000 per $100,000 of equity investment, or a gain of roughly $167,000. That translates to an 80 percent return on a minimum down payment of over $208,000 (20 percent) for the average-priced home of $1,041,380 in May 2020. Toronto buyers fared slightly better, with a gain of about $145,000, or a 237 percent return on their down payment. Per $100,000 of invested equity, that is an increase of $16,800.
Impact of Down Payment Requirements
The size of the down payment across different markets significantly affects the return on investment. Lower-cost markets like Calgary, where the average price was below $500,000 in 2020, only required a five percent down payment. This contrasts with 15 percent for municipalities like Ottawa and 20 percent for Canada’s highest-cost market, Vancouver.
Current Market Dynamics
Calgary realtor Raj Sandhu notes that while the study highlights benefits for buyers who moved from larger markets, the city's market today is driven more exclusively by local buyers. "People who were sidelined over the last couple years are now coming out to buy," he says. One reason is that Calgary’s market has cooled, with prices declining in some areas and for some housing types, or at least not rising as quickly as during the pandemic and its aftermath.
