Edmonton's Townhome Market Poised for Breakout Year in 2026
Edmonton, traditionally known as a single-family home market, is experiencing a significant shift as townhomes gain unprecedented popularity among buyers. The city has emerged as one of Canada's most promising markets for this dwelling type, offering an ideal blend of affordability and desirable features that appeal particularly to first-time home buyers.
Affordability Gap Drives Market Shift
The financial advantage of townhomes in Edmonton is substantial and undeniable. According to recent statistics from the Realtors Association of Edmonton, the average price for a townhome reached approximately $297,000 at the end of 2025, representing a nearly two percent increase from the previous year. In stark contrast, the average detached home price soared to nearly $567,000, marking a more than five percent increase from 2024.
"The average single-family home is $250,000 more expensive than a townhome," explains Aligul Arslan, a realtor with eXp Realty in Edmonton. "So it's a no-brainer to start off with a townhome if you're a first-time home buyer."
This significant price differential has created a compelling value proposition that's driving market behavior. Over the past five years, townhome resales in Edmonton have surged nearly 40 percent, while single-family detached home sales have declined more than seven percent during the same period.
National Recognition for Edmonton's Townhome Market
A comprehensive study by national realty firm Zoocasa confirms Edmonton's standing as one of Canada's premier townhome markets. The city ranked fourth among major Canadian markets for price growth, with townhome prices increasing more than four percent to reach $272,400. Perhaps even more significantly, Alberta's capital emerged as the second least costly townhome market nationwide, trailing only Moncton at $242,600.
"It's a very healthy market for townhomes," says Darlene Reid, chair of the Realtors Association of Edmonton. "Our townhomes are not exhibiting a bubble-like swing."
This stability stands in contrast to other major markets across Canada. In Greater Toronto, where townhomes previously experienced significant growth, the average price dropped about eight percent last year to approximately $693,000. Even in neighboring Calgary, townhome prices fell about five percent to reach around $438,000.
First-Time Buyers and Investors Find Common Ground
The primary driver of Edmonton's townhome demand remains affordability, particularly among first-time buyers seeking to enter the housing market. This demographic is increasingly recognizing the value proposition that townhomes represent, especially when compared to the soaring costs of detached homes.
Interestingly, the attractive pricing has also made Edmonton townhomes appealing to investors. "A lot of people can't afford to rent a detached home, so they'll rent a townhome that has a little yard, a garage and three bedrooms," Reid notes, highlighting the rental market potential.
Despite the clear financial advantages, some first-time buyers in Edmonton still express a preference for single-family detached homes. "It's more of an emotional decision," Arslan observes. "People aim for the single-family home, but townhomes offer great opportunity and value."
Overcoming Perceptions and Looking Ahead
One persistent challenge facing the townhome market involves outdated perceptions about quality and lifestyle. Some potential buyers still view townhomes as inferior to single-family homes, despite the modern amenities, community features, and architectural quality available in many new developments.
Market statistics tell a different story. While single-family homes remain popular, comprising about 58 percent of all resales in Edmonton during 2025 (15,667 out of 26,835 transactions), townhome sales reached 3,915 last year, representing approximately 15 percent of all market activity. This growing segment demonstrates increasing acceptance and demand.
As Edmonton continues to evolve as a housing market, townhomes are positioned to play an increasingly important role in addressing affordability challenges while providing quality living options. The combination of reasonable prices, steady growth, and desirable features suggests that 2026 could indeed be the year when townhomes establish themselves as a mainstream choice for Edmonton home buyers.
