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Was reading the old "renting vs owning" Skyrise thread and saw a comment stating that it was cheaper to own than to rent in 2022. Decided to check if that was true in 2025.

Average cost to rent a 2bd apartment in Edmonton: $1,661
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Average cost to own: $239,000 (2bd condo sales from Jan. 1 to today), fixed rates available at 3.99%, assuming 5% downpayment = $1,255 per month

Utilities are a crapshoot because not all rentals include them, but since average condo fees are around $500, it's safe to assume that in the past three years, the comparative cost of owning an Edmonton home has exceeded the cost of renting.
 
Yes, utilities are a crapshoot. Many rentals here do not include power which could be 50 - 100 per month, some condo fees do, some don't. If that's the case, then it comes out very close to even.

Also, I'm not sure if the 1,255 is based on a mortgage payment some of course which goes to equity, you get no equity in renting. Lastly the cost/price is locked in when you purchase, rent will likely increase in the future.
 
policyenthusiast said:
Have an update, it is quite substantial:

News From Canada Mortgage and Housing Corporation (CMHC):​

Federal government invests in 1431 homes in Edmonton​

EDMONTON, AB, March 4, 2025 /CNW/ - Today, the Government of Canada announced more than $46 million in contributions and low-cost repayable loans to build and renew 1431 homes at 21 housing projects located across Edmonton.

Today's announcement was made by the Honourable Randy Boissonnault, Member of Parliament for Edmonton Centre, Alberta, on behalf of the Honourable Nathaniel Erskine-Smith, the Minister of Housing, Infrastructure and Communities, alongside Lindsay Munn, Vice President of Property Portfolio Management for Civida.

The announcement took place at Central Village, a low-rise 42-unit apartment building owned and operated by Civida, which received $24,300 funding through Canada Greener Affordable Housing (CGAH) program as part of today's announcement.

The projects announced today are supported by various initiatives under the National Housing Strategy (NHS) and are designed to meet needs across the housing continuum, with a focus on Edmonton's most vulnerable populations.

The funding announced today includes:

  • $37,179,550 in contributions and loans through the Affordable Housing Fund (AHF), which will help create 124 units across 2 projects.
  • $8,836,337 in contributions and loans through the Canada Greener Affordable Housing (CGAH), which will help renew 1307 units across 19 projects.
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Look at Don Iverson working away from behind the scene.

I also applaud the change CMHC has made that stops people buying a number of single family homes (suited or not) to reach the number of units to qualify for commercial mortgages.

Commercial mortgages allowed individuals to get 50 year terms at better than posted mortgage rates. It was disgustingly unfair.
 
David A said:

Edmonton real estate could be country's spring market unicorn​


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No real news or surprises in this article. Market's still hot in Edmonton and Calgary, and supply can't increase much before May.

Glad I finally got around to owning instead of renting, prices have been rising faster than I've been able to save.
 
policyenthusiast said:
Was reading the old "renting vs owning" Skyrise thread and saw a comment stating that it was cheaper to own than to rent in 2022. Decided to check if that was true in 2025.

Average cost to rent a 2bd apartment in Edmonton: $1,661
View attachment 638247
Average cost to own: $239,000 (2bd condo sales from Jan. 1 to today), fixed rates available at 3.99%, assuming 5% downpayment = $1,255 per month

Utilities are a crapshoot because not all rentals include them, but since average condo fees are around $500, it's safe to assume that in the past three years, the comparative cost of owning an Edmonton home has exceeded the cost of renting.
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Don't forget to factor in property taxes and insurance into the costs for owning vs renting. That widens the gap a bit more
 
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archited said:
And Equity build-up
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Monthly investing the savings between renting and owning (along with never incurring large maintenance or replacement expenses) will typically build up greater equity than mortgage principal reduction and capital appreciation. The benefits of owning vs renting are primarily emotional, not financial.
 
archited said:
And hedge against rent increases
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Yes, most residential leases here are for one year or less and rents have been rising here in recent years.

A mortgage can lock in payments for 5 years and of course the price you paid for the property is locked in for as long as you own it.
 
policyenthusiast said:
No real news or surprises in this article. Market's still hot in Edmonton and Calgary, and supply can't increase much before May.

Glad I finally got around to owning instead of renting, prices have been rising faster than I've been able to save.
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Yes, still hot here, Calgary not as much.
 
David A said:
Yes, most residential leases here are for one year or less and rents have been rising here in recent years.

A mortgage can lock in payments for 5 years and of course the price you paid for the property is locked in for as long as you own it.
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While the price you paid is indeed locked in for as long as you own it, that doesn’t mean you might not be under water with that price for a long time (just ask lots of Edmonton condo owners who probably still can’t sell for anywhere near what they paid).
 
kcantor said:
While the price you paid is indeed locked in for as long as you own it, that doesn’t mean you might not be under water with that price for a long time (just ask lots of Edmonton condo owners who probably still can’t sell for anywhere near what they paid).
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Yes, there is risk in life in every financial decision - rent can go up or down in the future, house prices can go up or down. Investment values can also go up or down too and big market declines could be used as an argument against investing.

Edmonton's real estate market has been unusual in the past decade or so that prices have stagnated or gone down for some period of time, which has not been the experience generally over time or in most other places.

Perhaps that will continue, but I feel it is more likely in the future that will change if for no other reason given how far rents and prices elsewhere have diverged from here, there seem to be a lot of affordability refugees coming here putting upward pressure on real estate prices and rents.
 
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