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By Ashley Lavallee-Koenig

"GOOD TIME TO BUY"

Red Deer named Canada’s third-most affordable city in Royal LePage report

May 31, 2024 | 4:50 PM

A recent report by Royal LePage has found Red Deer to be Canada’s third-most affordable city in Canada, and the most affordable city in Alberta.

“I think it shows that there’s confidence in our economy here in central Alberta,” said Chad Jensen, broker and owner of the Royal LePage Network Realty Corp. in Red Deer.

Based on aggregate data, Red Deer was found to have an average monthly mortgage payment of $2,049.88 and a house price of $392,900, based on a median total household income of $95,900.

“It’s obviously a very good time to buy right now, either if you are in that starter type position or if you’re in an existing home and you want to move into a larger home, we’re in a great marketplace for that right now and very affordable still,” said Jensen. “As we become more attractive and obviously the word is out that Red Deer is very affordable, we can expect our house prices to climb here in central Alberta to what would be a normal price range for our marketplace.”

The ranking is determined based on the percentage of a household’s income that would be required to maintain a monthly mortgage payment, which is determined by looking at provincial median household income data and city-level aggregate home price data. The mortgage calculation is then based on a three-year fixed term loan at 5.71 per cent, gradually reduced over 25 years with a 20 per cent down payment.

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“We were kind of hidden, we were almost that secret city that nobody knew about and now we’re on the radar that people are starting to notice it,” said Jensen.

The survey also measured the likelihood of relocation, with home prices and lower cost of living named the number one reason to do so, followed by desire for proximity to nature and a more relaxed lifestyle. It found that renters are more likely to consider relocating than homeowners.

Residents in the Greater Toronto and Greater Vancouver areas named Edmonton as their top choice for relocation, while Greater Montreal residents indicated Quebec City as their top choice.

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