Market Trends

Is it cheaper to rent or buy a family-sized home in Edmonton (2024 data)?

Quick Answer

Short answer: Buying edges out after ~3.5 years: average 3-bed rent is $2,050, while owning the same-size house costs ≈$2,090 all-in, but builds equity.

Detailed Explanation

2024 averages. CMHC's January 2024 Rental Market Survey puts the mean rent for a three-bedroom purpose-built unit in Edmonton at $2,050. REALTORS® Association of Edmonton reports the median price for a three-bed detached starter (<1,600 sq ft) at $415,000.

With 5% down, a 25-year amortisation and a 4.75% fixed rate, the monthly mortgage payment is $2,050. Add property tax ($260), insurance ($85), utilities ($195), and maintenance reserves ($90) for a total of $2,680.

Rent: $2,050/month (zero equity building)
Own: $2,680/month ($395 principal + equity)
Net ownership cost: $2,285/month after equity
Break-even: 3.2 years with 3% appreciation

Long-term advantage. Ownership builds $4,740 annual equity in year one, rising to $8,200+ by year five. Rent increases average 2.8% annually while mortgage payments stay fixed.

Disclaimers: Calculations based on 2024 averages. Individual circumstances, interest rates, and market conditions vary. Consult financial advisors for personal situations.

Disclaimer: This page is for general information only and does not constitute legal, financial, or real estate advice. Always verify details with a licensed Alberta REALTOR®, mortgage professional, or lawyer before making decisions. Buy in Edmonton assumes no liability for actions taken based on this content.

Tim Grover, RE/MAX Excellence • 780-288-5144 • 5607 199 Street NW, Edmonton, AB

Is it cheaper to rent or buy a family-sized home in Edmonton (2024 data)?

Quick Answer

Detailed Explanation

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