Calgary single-detached homes see 9% bump in value, offices see ‘flight to value’

Editor’s note: An earlier version of this story said single detached homes would see a change in property taxes based on how its value changed compared to a nine per cent change, instead of the residential property change of six per cent. We regret this error.

The COVID-19 pandemic continues to play a role in the changing values of properties across Calgary.

On Wednesday, nearly 560,000 property assessments were sent to owners across the city. The assessments were based on market value as of July 1, 2021, and physical condition as of Dec. 31, 2021.

Residential properties, including detached single homes, condominiums and multi-residential buildings, saw a six per cent increase in value from 2021.

Non-residential properties, which include warehouses, offices and retail spaces, saw a five per cent drop in value as a group.

Single detached homes saw the biggest bump in median value to $485,000, up from $445,000 the year before – a nine per cent jump.

Median value of residential condos stayed flat and multi-residential units saw a one per cent increase.

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Eddie Lee, the City of Calgary’s director of assessment, said more people are moving to the suburbs and into single-detached homes in an effort to find more space to do things like work from home as the pandemic continues.

“That has resulted in suburban homes being valued more as well as commute times are not as important,” Lee said.

Most of the increases in value were in the suburbs, with suburban valuations up 10 per cent this year. Inner-city homes saw a three per cent bump.

Office spaces led the losses in the non-residential sector in Calgary with a 10 per cent drop in assessed value from 2021.

But Lee said downtown’s AA office towers were performing better than the rest of offices around the city.

“We are seeing a flight to quality where tenants are moving from lower-quality office towers into some of those premier office towers,” Lee said. “As such, we’ve still seen a drop in overall office values.”

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The continued work-from-home arrangements have been a drag on office values, but it’s helped keep industrial land values afloat.

“Because of increasing e-commerce, the desirability for more storage and distribution space, we’ve seen large warehouses values continue to be strong and they have been stable and it’s been actually quite resilient.”

Retail has seen a bit of a recovery, Lee said, in all areas of the city except downtown. Grocery stores and large-format retail continue to have strong non-residential land valuations.

But land values of Calgary hotels and motels continue to struggle, along with the hospitality industry as a whole, with hotel land assessments dropping by 14 per cent in 2022, following a nearly 20 per cent drop in 2021.

With residential properties making up 74 per cent of the city’s total land value, the total value rose by more than five per cent to $313.5 billion.

Calgary land owners have until March 14 to contact the city seeking adjustments to the assessments.

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Assessments can affect property taxes, depending on how a certain property does compared to others in its residential/non-residential class.

For example, if a single-detached home saw a less than six per cent increase in assessed value in the past year, it would likely pay less property taxes. A home that saw a more than six per cent increase would pay more.

Land owners can use the city’s property tax calculator to find out how much their property taxes will change for 2022, but the city notes 92 per cent of residential properties will see a less than 10 per cent increase in their property tax bill.

About 73 per cent of non-residential properties will stay within 10 per cent of last year’s taxes, as well.

In November, city council approved a 3.87 per cent increase to the property tax rate, with increased funding going to police, fire, roads, public safety, arts and culture, climate action and downtown revitalization.

A significant portion of property taxes also go to the provincial government. Any changes to that amount will be announced in the spring.