Calgary property assessments say median single home value jumped to $610K from $555K

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Calgary property assessments say median single home value jumped to $610K from $555K
WATCH: The City of Calgary has mailed out 2024 property assessments to the more than half a million home and business owners in the city. As Adam MacVicar reports, property values continue to rise in Calgary. – Jan 3, 2024

The City of Calgary has distributed its 2024 property assessment notices and the vast majority of homeowners will find their homes are, in the eyes of the city, worth much more than last year.

According to city officials, the typical residential property market value increased by 10 per cent over 2023’s assessment and non-residential assessments increased, on-average, by three per cent.

The median single residential assessment in 2024 was $610,000, up from $555,000 in 2023, and the median residential condominium assessment for this year was $295,000, up from $255,000 in 2023.

The assessments are based on market valuations as of July 1, 2023, and the condition of the property as of Dec. 31, 2023, and are the basis for determining property tax rates and bills.

The city attributes the spike in assessments to “vigorous sales and market demand” in Calgary in a housing market that “remains strong with robust sales indicating continue strength and real estate market confidence.”

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“The sustained year-over-year growth in the residential market was primarily driven by a surge in net migration, causing an influx of new buyers to enter Calgary’s relatively affordable housing market,” City of Calgary assessor Eddie Lee told reporters.

“With this increasing demand, new housing supply was not able to keep up, which caused property values to increase.”

More than 580,000 assessments were mailed out to Calgarians and are expected to be received within the next couple of weeks.

According to city officials, the value of single-detached homes increased by nine per cent, while multi-residential buildings rose in value by four per cent.

However, residential condominiums experienced a 17 per cent increase as “new buyers entered or moved into Calgary’s real estate market.”

“Overall, condos are lower values than a typical single-detached,” Lee told reporters.

Commercial properties also increased in value this year, according to the city’s assessment, slightly more than the two per cent rise in value last year.

The value of industrial properties climbed nine per cent, and retail properties rose by two per cent.

The newly assessed values are a positive economic indicator, according to David Wallach with Barclay Street Real Estate.

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“It shows growth, it shows employment, it shows migration and immigration; all good news for the city and the province,” Wallach told Global News.

Notably, the value of office space remained flat this year with a zero per cent market change.

City officials said the downtown office market remains “stable,” after values tumbled during the economic downturn in 2014.

“What we’re seeing downtown is small and mid-sized companies are way more active than the big companies right now,” Wallach said. “That’s why it will take a long time to get the office market to a lower vacancy.”

Meanwhile, hotel property values in Calgary grew by 23 per cent following a rebound from plummeting values during the COVID-19 pandemic.

Although the values remain below 2019 levels, the Calgary Hotel Association said it is encouraging its membership to appeal the city’s assessment.

“It is still a relatively high increase and we’re encouraging all hoteliers across the city to appeal their assessments,” Calgary Hotel Association executive director Sol Zia told Global News. “We believe the average increase will drop further based on broad appeal from hoteliers across the city.”

The customer review period, where homeowners and business owners may question and challenge their assessments, is now open and will remain available until March 11.

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According to the city, approximately 90 per cent of revenue neutral taxes from residential properties will stay within 10 per cent of last year’s tax bill.

“Anyone who’s made an investment in a property, your investment has gained value; that’s the good news,” Calgary Mayor Jyoti Gondek said. “The thing is, when it gains value, your property taxes do increase.”

Gondek also encouraged Calgarians to review their notices and reach out to the city to learn more about the process.

The total value of the 2024 Assessment Roll is $387 billion, an increase of $35 billion in value from last year.

To view your assessment visit City of Calgary Property Assessment.

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