Updated on July 19th, 2024
The Calgary rental market is the hottest it has been in years and shows no signs of slowing down soon. Limited rental and residential stock, particularly in the single-family and townhouse market, and rising interest rates make it more challenging to buy than before and keep rents high across the city.
Many of our clients consider this current climate a good opportunity to invest in the city. Not only is the city growing, with more and more people moving to Calgary, but the buzz around it is as well. According to Calgary Economic Development, the city has a startup ecosystem valued at $2.7 billion and is expected to grow by 1,000 new firms by 2030.
Considerations Before Investing in Real Estate in Calgary
Calgary is a great place to invest, but as in any city, some areas are growing faster than others and are more desirable than others. For real estate investment, there are two crucial factors to consider.
- How Well a Property Will Rent
In this case, you are looking for whether tenants will want to live in that area, how in-demand the area is for people to rent in, and whether that will likely continue soon. Some areas are very nice, but they tend to attract people who want to buy instead of rent. For landlords, the key is to ensure stable tenancy and rental income that covers the basic costs of owning an investment property.
- How Well the Property Will Appreciate
While some factors are controllable, such as maintaining the property’s appearance, continuing to upgrade as needed, and ensuring quality curb appeal, most are not. Neighbourhood amenities, walkability, access to quality schools, and neighbourhood lifecycle are all factors that influence property appreciation. Considering these factors makes a big difference in the return on your investment.
We constantly analyze the market, looking at the rental and sales markets to see what opportunities exist for investment. These are the areas that we love for real estate investment right now.
Our Favourite Calgary Neighbourhoods for Real Estate Investment
1 – Tuscany
Tuscany (Source)
Officially established in 1994, Tuscany was primarily developed in the late 1990s and early 2000s. It is Calgary’s fifth largest neighbourhood, home to nearly 20,000 people, and located along the city’s west edge, accessible by Stoney Trail and Crowchild Trail.
From an amenities perspective, Tuscany offers many. It is serviced by the C-Train’s Tuscany Station, giving people an easy avenue to and from downtown. It’s also near the new YMCA and has the Tuscany Club for residents. Inside the community, there is a well-maintained shopping plaza and multiple larger shopping areas nearby. These are all factors that tenants love.
Economically, the area has seen year-over-year growth of about 10% and a five-year increase of nearly 15% in value. This is not the highest in the city but points to a steady gain in value with slight depreciation compared to other areas. Places in Tuscany rent well, rent easily, and hold their value. For those who cannot afford to buy, being able to live in Tuscany is a big opportunity. Capitalizing on this market as a landlord is an easy way to see cash flow and appreciation.
2 – Parkdale/Point McKay
West Hillhurst, just east of Parkdale (By Oceanflynn)
If you’re looking for an area to hold for land value and appreciation, this is the place to do it. Parkdale and Point McKay are located along the Bow River’s west side of the city. These areas are steps from Market Mall, The University of Calgary, and Foothills Hospital and just minutes from downtown.
The biggest draw for these areas is the access to the river, but given the river’s trajectory, it tends not to flood, which is great news from an insurance perspective. On top of that, it is an area with large trees and lots for potential upside down the line on single-family purchases. For now, they rent very well due to the attractions nearby and the access to downtown.
As the city grows, these areas become closer to downtown and more valuable. It is also an area in transition, with many new homes being built on older lots and a changing demographic of younger families coming into the area. With good schools and many parks, it’s an area that tenants love and want to be in. This is an area to look at seriously for investors looking for steady returns now and long-term benefits down the line.
3 – Coach Hill
Coach Hill (Source)
Coach Hill has always been the forgotten little brother in the city’s Southwest, but it has a unique charm that is finally being recognized. As an older community, it has larger lots, big trees, and lots of community spaces and parks, which are desirable for tenants.
From an investment perspective, it has seen above-average year-over-year growth and has long-term upside given its proximity to downtown and many access roads while retaining a quiet community feel. Tenants love renting here because of its schools, shopping and amenities nearby, and neighbourhood charm. While it’s not the flashiest area in the city, it has the traits that most tenants like.
Currently, Coach Hill is in the middle of its lifecycle, meaning the homes are older and in the renovation stage. This is a great area for investors looking for an interior renovation and flip. But personally, we like Coach Hill for its potential for long-term growth with good rents and the ability to cash out down the line by either selling the house for redevelopment or by flipping it yourself.
4 – Patterson Heights
Patterson Heights Aerial View (Source)
Located on the western outskirts and surrounding Coach Hill, Patterson is a neighbourhood that has shown steady property appreciation since its first developments in the 1980s. The area is known for its peaceful and suburban atmosphere while still being close to Calgary’s vibrant urban environment, its mountain views and green spaces, and its proximity to downtown and several schools. It attracts young professionals, families, and seniors alike, ensuring a stable and diverse potential pool of tenants who prefer to live close to the mountains.
With an average benchmark price of $552,006 in 2023, Patterson is currently one of the most attractive areas in the city to buy a rental property.
5 – Cougar Ridge
Cougar Ridge (Source)
Located northwest of Patterson Heights, Cougar Ridge offers the same easy access to downtown and the closeness to attractive natural areas, including parks, green spaces, and other recreational areas such as the Canada Olympic Park, Griffith Woods Park, Bowness Park, and Paskapoo Slopes, to name a few, that give residents plenty of opportunities for outdoor recreation.
With a mixed residential development, including single detached homes, townhouses and apartments, Cougar Ridge is known for being a family-friendly neighbourhood, which tends to be long-term renters. As of July 2024, the benchmark price for a home in this area starts at $445,000, making it an attractive option for landlords to consider.
Take Advantage of Calgary’s Real Estate Opportunities
As the city continues to grow, Calgary strengthens its position as a great city to become a landlord. It’s a great time to explore investing in this city, especially in these booming neighbourhoods where we’re sure you’ll find the perfect property to build your wealth.
