Fewer Young Calgarians Affecting Housing Demand

A decline in the number of younger adults in Calgary, AB, is having a dampening effect on housing demand, says the Canada Mortgage and Housing Corporation (CMHC). The decline is helping to push the number of unsold homes to near historic levels. The unabsorbed stock of single detached units reached 627 at the end of the second quarter of 2020, up nine per cent from the same period in 2019. CMHC is seeing moderate evidence of overbuilding in Calgary as the number of completed and unsold homes per 10,000 population approaches a historic high set in the first quarter of 2001. In the semi-detached and row unit category, the unsold tally reached 738 – lower than a high of 801 in 2019, but still trending higher. The recent economic woes due to oil price softness were further aggravated by the COVID-19 pandemic, it says. As a result, the city is seeing slower population growth, as fewer people in their 20s and 30s – a key demographic for purchasing real estate – are making Calgary their home.