Multi-family housing is one of the market’s bright spots
The Edmonton housing segment is noticeably sluggish on both the low- and high-end sectors, according to market players.
In late 2019, around 60 residences in Edmonton were listed at a value of less than $100,000. Approximately the same number of properties entered the market at a value of more than $2 million.
“[They’re] different leagues but it’s interesting that some of the same pressures apply but in different ways,” Realtors Association of Edmonton chair Michael Brodrick told CBC News. “The whole market has been subject to these pressures on price.”
The cheaper price brackets were largely characterized by one-bedroom condo units.
The market dynamics in the low end make perfect sense, according to David Dale-Johnson, the Stan Melton executive professor in real estate at the University of Alberta.
“They’re old, small, and generally speaking they’re not close to the downtown core or hubs of business and retail,” Dale-Johnson stated. “These are all factors that affect the value of any home, and these are no exception.”
Multi-family homes, however, have been enjoying a renaissance, amid a resurgent economy and improving household incomes. Marcus & Millichap’s Q4 2019 local apartment report showed that multi-family demand in Edmonton remained stable during the tail end of the year.
This is despite the oil industry still showing signs of weakness with the loss of 9,200 jobs over the year ending in September.
Meanwhile, “at the high end, you’re getting very good value for your money. You’re getting everything you could possibly want for a reasonable price,” Brodrick explained.
