After several years of rapid growth and heightened competition, Calgary’s real estate market is entering 2026 in a more measured position. Bidding wars have cooled, inventory has risen and buyers are approaching decisions with greater scrutiny. Across residential, commercial and industrial sectors, the dominant theme is balance.
National headlines often frame housing markets in extremes, but local data tells a more nuanced story. Slowing migration, record construction now reaching completion and a relatively resilient economic backdrop are reshaping Calgary’s real estate landscape, not derailing it.
Residential market shifts from urgency to balance
From a residential perspective, the market’s tone has softened without tipping into decline.
“I’d describe it as balanced overall, with a clear undertone of caution,” says Dennis Plintz, associate broker and team lead at Plintz Real Estate. “But it’s still in very good shape relative to the rest of the country, and there’s opportunity.”
Sales activity from 2025 supports that assessment. Calgary recorded 22,751 residential sales last year, down 16 per cent year over year, but consistent with long-term averages. The more notable change came from the supply side. More than 40,000 new listings entered the market, an increase of nine per cent, shifting conditions away from a firm seller’s market.
That transition is expected to continue through 2026.
“The market now ranges from balanced to buyer conditions depending on property type,” says Ann-Marie Lurie, chief economist with the Calgary Real Estate Board (CREB®). She explains that the shift began in 2025 as record construction levels coincided with slowing demand tied to a sharp change in migration. After population growth surged to roughly 80,000 people annually between 2022 and 2024, current estimates point closer to 20,000 new residents, materially altering housing demand across several segments.
Detached and semi-detached homes remain the most stable property types. While price growth has moderated, benchmark prices posted modest gains in most parts of the city, offsetting softer conditions in the north and northeast.
Apartment-style and row housing segments have faced the greatest pressure. Lurie points to the combined impact of new rental supply and easing population growth, which has increased vacancy rates and softened rents. That shift has reduced investor demand and slowed the transition from renting to ownership, weighing most heavily on apartment-style resale units as competition intensifies across rental, new-home and resale markets.
Negotiation returns as a defining feature
Pricing behaviour has adjusted accordingly. Early 2025 was marked by rapid sales, unconditional offers and limited negotiation. That environment has largely disappeared.
“Sellers are becoming more realistic,” explains Plintz. Pricing at or slightly below market is increasingly common to generate interest, while aggressive overpricing is no longer rewarded. In some cases, strategic underpricing is being used, though Plintz cautions that approach carries risk without a clear plan.
Market performance continues to vary by segment. Inner-city single-family homes priced under $1 million remain competitive, particularly near schools and established amenities. Limited supply in those areas continues to support pricing near list, and multiple offers still occur in select pockets.
Above that price point, conditions slow. Buyers have more leverage, timelines are longer and sellers often need to adjust expectations.
Condos remain the most challenged segment. Apartment-style benchmark prices declined nearly three per cent in 2025, while sales fell 28 per cent year over year. Much of that pressure stems from purpose-built rental projects delivering significant new supply, which has increased vacancy rates and softened rents.
That shift has directly impacted investor demand and resale condo performance. Still, Plintz cautions against broad conclusions.
“Well-located, quality condos are trading below replacement cost in some cases,” says Plintz. “There is value out there, but buyers need to be selective.”
Buyers slow down and conditions return
Rising inventory has fundamentally altered buyer behaviour. Conditions and due diligence are once again standard parts of transactions.
“Buyers are more patient and more conditional than they were a year ago,” notes Plintz. With interest rates appearing more stable and more choice available, urgency has eased across most segments.
That change is reflected in listing activity. While listings dipped during the holiday period, supply rebounded quickly. More than 1,100 new listings entered the market in a single recent week, a pace expected to continue through the spring.
Some areas remain tight. Inner-city detached homes near key amenities still require decisiveness from buyers. Elsewhere, flexibility has returned, contributing to a healthier and more sustainable market.
Affordability remains a relative advantage
Despite rising living costs, housing affordability in Calgary continues to compare favourably with other major Canadian cities.
“The bigger concern for most people right now is overall cost of living, not just housing,” says Plintz. “But housing affordability in Alberta is still strong relative to other markets.”
Availability, once a major constraint, is no longer the primary issue. Supply improved meaningfully in 2025 and is expected to increase again in 2026, particularly for condos, townhomes and new builds. Buyers with flexibility on location or product type now have more options.
CREB® data reinforces that outlook. Lurie points to more than 25,000 residential units currently under construction in Calgary. At current migration levels, that volume suggests sufficient overall supply, though it does not necessarily resolve affordability challenges across all income levels.
“Broader numbers don’t always tell us whether supply meets housing needs,” she explains. “Cost of living and affordability challenges are still top of mind.”
New construction offers choice, with limitations
While construction activity remains elevated, enthusiasm for custom builds has softened.
Construction costs have nearly doubled since 2013, timelines often stretch 12 to 24 months, and builders are offering limited price flexibility. As a result, many buyers are turning back to resale properties to avoid cost and timing risk.
In newer communities with larger builders, opportunities still exist. Buyers can find competitive pricing and modern layouts, but quality varies.
“In many cases, homes built five to 10 years ago offer better value and construction than brand-new product that looks good on day one,” observes Plintz.
Lurie adds that increased permits and construction activity typically take several years to meaningfully impact resale supply and pricing. In Calgary’s case, it took nearly three years for record construction levels to affect market conditions, and that adjustment only occurred because migration slowed from historic highs. Had population growth remained elevated, supply pressures would likely have persisted.
Commercial and industrial sectors influence housing demand
Beyond residential real estate, commercial and industrial performance continues to shape housing demand.
“Residential demand often follows changes in the economic climate,” says Lurie. Business investment can lead to job growth, which supports population growth and housing demand.
Industrial real estate tied to warehousing and distribution tends to track population growth more closely, while manufacturing-related space is more sensitive to broader economic conditions. Commercial investment confidence also plays a role, feeding into employment stability.
Looking ahead, Lurie notes that Calgary’s housing outlook remains closely tied to broader economic confidence and business investment. Ongoing discussions around a potential memorandum of understanding could support near-term confidence if progress is made. Over time, improved investment and employment prospects would help stabilize demand across both ownership and rental markets, reinforcing Calgary’s long-term housing fundamentals.
A market that rewards long-term thinking
Speculative activity has slowed sharply. The surge of out-of-province investors seen in earlier years has faded, and some large-scale projects remain far from fully sold.
“This is not a year to be a speculator,” says Plintz. “It is a year to be thoughtful.”
He cautions against relying solely on headlines, which often paint the market with too broad a brush. While some segments face pressure, others offer long-term value, particularly for buyers planning to live in Calgary and hold property over time.
“The data points to stability, balance and long-term resilience,” says Plintz. “Quality, location and fundamentals matter more than ever.”
For a city accustomed to cycles, 2026 appears less like a turning point and more like a recalibration, one that rewards patience, diligence and informed decision-making.