High housing costs, whether in the form of high rents or high mortgage payments, have impacted almost everywhere in Alberta, but Canmore, which is already synonymous with high-end living and soaring real estate prices, just keeps on getting more expensive.
With property prices hitting a median of $1.67 million for single-family detached homes in 2024, Canmore’s housing market remains one of the most expensive in Alberta. This steep climb in housing costs is driven by limited supply, high demand, and unique geographical constraints.
Why Are Prices So High?
Canmore’s popularity stems from its breathtaking surroundings, proximity to Calgary, and access to world-class outdoor activities such as skiing, hiking, and biking. Unlike nearby Banff, which restricts home ownership to residents working in the town or the national park, Canmore offers more freedom for buyers, attracting interest from across Canada and internationally.
However, the town’s geographic and regulatory limitations significantly impact the housing supply. Brad Hawker, associate broker at Royal LePage Solutions, notes that Canmore’s land base is limited by surrounding provincial parks and the Rocky Mountains. “We’re between Bow Valley Provincial Park and Banff National Park and mountains on either side,” he said, emphasizing that possible development is constrained to a small geographic area.
Buyers from British Columbia, Ontario, and Quebec have entered the Canmore market, joining Albertans seeking second homes or investment properties. This demand has pushed prices even higher, with condos now averaging $765,000, an increase of 9.8% in one year. About 26% of Canmore homes are non-homeowner occupied.
Why Do Prices Keep Rising?
The imbalance between supply and demand is a significant driver of price escalation. Canmore’s new housing inventory remains limited, with several approved developments, like parts of the Three Sisters Village, still years from completion. Canmore realtor Dan Sparks points out that demand consistently outpaces supply. “You’ve got a huge population… who want access to the mountains,” he said, adding that Canmore remains cheaper than similar markets like Whistler.
Additionally, high-end buyers dominate Canmore’s market. Luxury homes sell for millions, with record-breaking sales like the $7.5 million Cairns Landing property in early 2024. These transactions highlight the influx of wealthy buyers less affected by rising interest rates, disproportionately impacting entry-level buyers.Inflation and rising construction costs further compound the issue. Many of Canmore’s existing homes are valued far below what it would cost to rebuild them today, giving sellers confidence in continued price increases. If you have cash, Canmore is a good investment. If you don’t, you’ll have difficulty finding a place to live. Canmore has the highest required living wage at $38.80 an hour, which few workers in retail and services even come close to making.
The Impact on the Community
While Canmore’s rising home values create wealth for property owners, they also strain the community’s fabric. Mayor Sean Krausert emphasizes that living costs make living in the town challenging for average workers. The median assessed value of a Canmore home is now over $1 million, pricing out middle-class families and essential workers. The result is a growing exodus of residents to more affordable communities like Cochrane.
“If we don’t act, we risk becoming an enclave for the very wealthy,” Krausert warned, citing the loss of young families, schools, and professionals as potential consequences.
Addressing Housing Affordability?
Canmore’s leadership is taking steps to tackle the affordability crisis. Over the next decade, the town plans to have over 2,000 non-market housing units and nearly 6,000 entry-level homes. Non-market housing, which remains affordable by bypassing market-driven price appreciation, is a cornerstone of this effort.
However, regulatory limitations hinder broader initiatives. Unlike Banff, Canmore cannot enforce inclusionary zoning or impose residency requirements. Instead, it relies on land-use policies and taxation to create affordable housing. Recent plans, such as the Palliser Trail development, aim to add 144 affordable rental units alongside market housing. Yet, progress is slow, and the demand far exceeds supply. As of 2024, Canmore Community Housing has a waitlist of over 200 households for rental and ownership programs.
Looking Ahead
Canmore faces a delicate balancing act. On one hand, it must cater to the demand for luxury homes that sustain its economy. On the other, it must address the critical need for affordable housing to retain its workforce and maintain its community spirit. And it must meet these demands while protecting the wild spaces and the wildlife that make Canmore so appealing.
With significant developments like the Three Sisters Village and Spring Creek Mountain Village still in the pipeline, the hope is that increased housing supply will temper demand. But as Sparks notes, “Canmore only seems to go up [in price].”
Critics argue that the town’s plans for affordable housing will be but a drop in the bucket, and they worry that Canmore will become another Whistler with only the rich owning housing, most of which ends up on the vacation rental market and not as homes for residents. Unless significant change happens, Canmore’s housing market is likely to remain one of the hottest—and most expensive—in Canada, where even a millionaire will be short cash to buy a family home in the desirable town.
