Melanie MoralesWondering why apartments in Edmonton are so cheap? There are a number of reasons for it and we’ll discuss them today, besides going over some other points about Edmonton’s current housing market.
Why is real estate in Edmonton so cheap?
Housing and rental prices in Edmonton are generally lower than in other cities in Alberta because of the abundant supply and low demand for properties.
This can also be attributed to the overdevelopment of properties in the past and Alberta’s low tax regime. Edmonton and other cities in Alberta don’t impose land transfer taxes, so buying or selling real estate is affordable.
What is the real estate market like in Edmonton?
In 2023, the housing and rental costs are expected to creep up as the vacancy rate goes down. According to the Edmonton Journal, the vacancy rate in Edmonton dropped to 4.3% from 7.3% at the end of 2022, so it has already begun.
That said, since the pandemic started, Edmonton and the whole province of Alberta have suffered from economic hardship brought on by drastically low oil and gas prices and a high unemployment rate.
Thus, even if there is still an excess supply of properties and the development of new units in Edmonton, there is a low demand for real estate properties and investments.
Many investors who bought properties during the real estate boom now want to sell the properties. This creates a massive imbalance between the housing supply and demand.
So if you’re asking “Is Edmonton still a good place to buy a house,” the answer is yes!
Edmonton also has the advantage of being a fairly consistent market for real estate investors. This is because property values in the city don’t tend to rise and fall drastically.
Hence, even if real estate property prices are expected to rise, Edmonton will likely stay among the most affordable cities to live in in Alberta this year.
Where are the cheapest places to rent or buy an apartment in Edmonton?
Here are the cheapest places to rent or buy an apartment in Edmonton this year, based on average rent and purchase prices:
Is it cheaper to rent an apartment or a house in Edmonton?
All other things being equal, renting an apartment is cheaper than renting a house in Edmonton. Of course, it still depends on how many rooms or how big the apartment or house is, as well as where it’s located.
Is it better to live in an apartment or a house in Edmonton?
In Edmonton, it’s better to live in an apartment if you want to be near the center of things and you want something more affordable. On the other hand, it’s better to live in a house if you want more space and privacy.
You see, if you’re a student or a young professional, renting an apartment is more advantageous because of city center locations and lower rental prices.
On the flip side, living in a house is recommended for those starting a family or living with their families. This is because there is more space to accommodate your growing family.
Besides that, people can easily find a house in the safest and best neighborhoods where they can settle.
Deciding between living in an apartment or living in a house greatly depends on your financial situation, housing requirements, and goals.
Nonetheless, if you need help finding an apartment or house, you can check out our listicles about the best real estate agent and mortgage brokers in Edmonton.
What are the pros and cons of living in an apartment in Edmonton?
The pros of living in an apartment in Edmonton is that it’s more affordable than a house, can give you better location options, and can come with built-in amenities like in-unit washer-dryers.
The cons of living in an apartment in Edmonton is that there’s generally less privacy and space, and fewer parking options.
Let’s go over these things in more detail.
The Pros of Living in an Apartment in Edmonton
More Affordable
As we’ve mentioned, living in an apartment can be significantly cheaper than living in a house in Edmonton. Since the space is smaller than a house, you can expect to pay less on utilities and maintenance.
If you’re just renting the unit, your landlord will pretty much shoulder all the costs for maintenance, repairs, and renovations.
Mobility
Apartments in Edmonton are usually located close to the city center, so you can conveniently access entertainment centers, attractions, shops, parks, and more.
If you live in a central location, you can be just blocks away from your workplace or school. This can also help you save more because you won’t be spending much on transportation costs.
Amenities
Newly developed apartments in the city offer valuable amenities that apartment renters and owners can enjoy. Some of the most common amenities you can find are onsite gyms, fitness centers, swimming pools, covered parking, and entertainment hubs.
Apart from that, you can also find furnished apartments with in-unit washers and dryers, ovens, and dishwashers.
These amenities would otherwise be costly to access, but since apartment buildings have these shared areas, you can use these amenities for free or at a lower price.
The Cons of Living in an Apartment in Edmonton
Less privacy and space
Living in an apartment means living close to your neighbors. This also translates to having less privacy and space.
For example, if the units have thin walls, there’s a chance that you’ll be constantly bothered by loud music or conversations from the neighboring units.
Having a nice and peaceful weekend might be impossible if your neighbors are busy drilling walls, moving furniture, or hosting a party in their unit. Other problems can also arise, like infestations, garbage disposal issues, and unpleasant smells from other units.
All these can be your problem if you live in a rowdy and crowded neighborhood.
Parking
If you live in an apartment building and you have a car, you need to have a designated parking space. Without it, it can be difficult to find a spot for your car, especially if you live near the city center.
Most apartment complexes offer one or two parking spaces per unit. This can be a hassle if you have friends over and there’s no space to accommodate all their cars.
Finding a roadside parking space near your building can also be hard because these spots are usually filled up by tenants’ cars too.
