Housing Market Plunge Sparks Calgary Turmoil

CALGARY — Calgary’s housing market experienced a significant cooling in December 2025, driven by increased inventory levels, according to the Calgary Real Estate Board's (CREB) latest data. Sales dropped approximately 15% compared to the previous year, with 1,126 homes sold versus 1,318 in December 2024. The market saw a 29% increase in active listings, reaching 3,860, which is well above typical December figures. Benchmark prices also declined, with total residential prices down about 4.7% to $554,700.

The Deeper Context

Calgary's current housing market dynamics are influenced by historical and economic factors, notably the city's "Home is Here" strategy initiated in 2023. This plan aims to boost housing supply and affordability, supported by $228.5 million from the federal Housing Accelerator Fund (HAF). The city's regulations, under Land Use Bylaw 1P2007 and the Municipal Government Act (MGA) updated in December 2025, provide the framework for these initiatives. Calgary has faced significant downturns before, such as during the 2008 financial crisis and the 2014-2015 oil price crash, which saw a 26% drop in residential sales. The current cooling trend mirrors these past challenges but is driven by a strategic push to increase inventory, particularly in the apartment and row home sectors, as evidenced by CREB's December statistics.

The Critics & Costs

While increased inventory levels are a strategic goal, they have led to uneven pricing pressures across housing types. Apartments and row homes face the steepest declines, with prices dropping 7% and 5.6% respectively. This trend poses risks for developers and investors in these sectors, who may face reduced returns. The Calgary Real Estate Board notes that detached and semi-detached homes are holding their value better, although they are not immune to the overall market downturn. The Community Housing Affordability Collective and the Calgary Affordable Housing Foundation are concerned about affordability implications, despite increased inventory. BILD Calgary Region emphasizes the need for continued supply to accommodate the city’s rapid population growth.

Looking ahead, Calgary's housing market will continue to adapt to these changes. The city's commitment to increasing housing supply through strategic initiatives aims to stabilize prices and enhance affordability. The next phases of the "Home is Here" strategy, alongside the ongoing impacts of the HAF, will shape the market's trajectory as Calgary welcomes more newcomers and addresses its housing needs.