he real estate scene in Calgary has undergone quite a transformation due to various lifestyle and economic factors. These changes started taking place during the pandemic and have continued to shape the market dynamics.
As a result, the housing preferences and migration patterns shifted. Calgary has become a hotspot for those seeking affordable housing. Basements have become more than just storage areas! In fact, basement builders in Calgary have seen a massive surge in demand.
In 2020, remote work and high housing prices in Ontario and BC spurred massive movement nationwide. During the pandemic, Alberta had loose lockdown restrictions, which motivated some groups of individuals to move.
Calgary Household Basement Finishing: is it Worth it?
With higher real estate prices and mortgage payments, more people are interested in walkout basements and secondary suites. In the third quarter of 2023, the city saw an 80% increase in building these spaces.
Basement builders in Calgary report that their businesses have increased demand for basement finishing. About 75% of the homeowners want a rental property to earn extra cash. But 25% of them expand their living space so their parents or kids can move in.
Economy growth Alberta
Alberta’s economy achieved stable growth over the past few years, reaching $349.1 billion in 2023. Despite facing challenges such as the pandemic, market access hurdles, and oil price crashes, the economy has recovered and is growing stronger. According to Mark Parsons, the chief economist at ATB Financial, the province’s economy is now firmly expanding.
The following factors impact the economic growth in Alberta:
1. Population growth: With a booming 4.3% from Q4 2022 to Q4 2023, Alberta has the most significant population increase due to internal migration.
2. Energy sector growth: Alberta’s energy industry overcame the challenging period thanks to increased investment and production.
3. Fighting inflation: the rise of interest rates by the Bank of Canada primarily impacts borrowing and spending.
4. Challenges: Wildfires, port strikes, and droughts have impacted the economy. Thanks to the population growth and recovering energy sector, Alberta is expected to perform well in the near future.
Calgary Housing Market
Alberta has experienced the fastest population growth since 1981, which has increased the demand for housing. In the first three quarters of 2023, the province had 145,000 new residents.
Calgary’s real estate market is the largest and priciest in Alberta, with a benchmark price of $554,500 by December 2023. As the demand is growing and there aren’t enough homes available, the prices keep increasing. Even the new construction that averages 13,500 houses per year won’t satisfy the growing demand.
The average rent increased to $2,071, 14% by December 2023. However, young families and individuals who move to Calgary need affordable housing when they first arrive. Also, the new generation has grown up and is looking for places to rent. Due to their affordability, walkout basements, in-law suites, and other rental basement units are popular.
During the pandemic, more and more people were traveling within Canada. The trend remains after the pandemic due to inflation and a harsh economy. These factors have made Alberta a popular tourist destination and raised demand for bed and breakfast accommodation.
Residents do a basement finishing Calgary to turn it into a welcoming bed and breakfast unit for an additional income. We already shared a guide on generating extra income from basement apartments, and you can keep up with that post here.
Cost to Finish Basement in Calgary
The cost to finish a basement in Calgary ranges from $70,000 to $100,000. However, it isn’t a one-size-fits-all solution: the final price depends on size, materials, and design. Your basement developers Calgary will provide a quote based on your specific project.
Knowing the raging prices on the real estate market, a finished basement is a wise investment. It increases the square footage of your home, adding an individual apartment that can be used for accommodating your family or renting.
Google Stats confirms the increasing popularity of basement renovations in Calgary. The search volume for the keyword “basement builders Calgary” grew 125% during 2023. “Basement walkouts” and “basement renovations” grew by 50%. “Construction basement” searches increased 1000%, revealing the massive popularity.
So, Should Albertian Homeowners Invest Today?
Whether you need additional living space to accommodate your family or want to earn from renting, basement reno Calgary is a wise investment. The high real estate prices make you think twice about the unused space downstairs. With a little effort, the basement can become an extension of your living space.
Using this opportunity, allow us to share some good news with you! Level Up Group has just opened a new branch in Calgary to help you design the space that suits your needs. If you want to renovate your basement and need help from a basement development team in Calgary, contact LevelUp now!
Any Questions?
Do you have any questions about your basement? Get in touch with the experienced team at LevelUp and feel free to ask them!
