Is It Better to Buy or Rent a Home in Calgary or Airdrie?

After years of helping families buy and sell homes in Alberta, here’s what I’ve learned about one of the biggest financial decisions you’ll ever make.

By Glenn Heslop | REALTOR® | eXp Realty

I remember a client who had just purchased her first home. We’d gone through the process, found a property she loved, arranged the financing, and finally reached possession day.

She was driving out to meet me to pick up her keys when she said something I’ve never forgotten.

“I’m driving towards crippling debt.”

She was only half joking.

The funny thing was, she could comfortably afford the house. We’d done our homework. She had qualified for the mortgage, and the payments were well within her means.

But the thought of committing to a mortgage for the next 25 years terrified her.

I understood. Buying a home is a big decision. You’re borrowing hundreds of thousands of dollars, and that can feel overwhelming, particularly when you’re buying your first property.

But I’ve often thought about something.

Isn’t renting a long-term financial commitment, too?

Think about it. As long as you need somewhere to live, you’re going to be making monthly housing payments. Whether you’re paying rent to a landlord or making payments on a mortgage, you’re committed to paying for a roof over your head.

And unless you’ve discovered a way to live without housing, that’s a pretty long-term commitment!

The difference is what happens to those payments over time.

So, is it better to buy or rent?

After years of helping families buy and sell homes in Calgary, Airdrie, Crossfield, Carstairs, and the surrounding communities, my general answer is that most people are better off buying—provided they buy wisely and plan to stay for a while.

But not everybody. And certainly not all the time.

Let me explain.

The Houses I Used to Rent for $1,200 a Month

I’ve owned rental properties over the years, and I remember renting out houses more than 20 years ago for around $1,200 a month.

Today, comparable properties can rent for approximately $3,000 a month.

That’s two and a half times as much.

Back when I was collecting $1,200 a month, I wasn’t getting rich as a landlord. In some cases, after paying the mortgage and other expenses, I was clearing perhaps $50 a month.

In other words, the cost of renting and the cost of owning were pretty similar.

Now, imagine two families living in comparable homes 25 years ago.

One family bought their home. The other rented.

Initially, their monthly expenses might have been quite similar. In fact, there are times when renting is cheaper than owning.

But over the next 25 years, something interesting happened.

The homeowners kept making their mortgage payments. Interest rates changed, and their payments may have fluctuated when they renewed their mortgage, but the original amount they borrowed didn’t increase.

Every month, they gradually paid down their debt.

Meanwhile, the renters kept paying rent.

And over the years, their rent generally increased.

Eventually, the homeowners paid off their mortgage. They still had property taxes, insurance, utilities, and maintenance to worry about, but that big mortgage payment was gone.

The renters? They were still paying rent, and likely considerably more than when they started.

That’s a pretty significant difference.

Of course, the homeowner also had expenses the renter didn’t. Furnaces break down. Roofs need replacing. Property taxes go up. And houses don’t always increase in value.

But when I look at the long-term picture, I can’t help thinking that the family who bought the home generally put themselves in a much stronger position.

The homeowner was gradually working toward owning something outright. The renter was paying for somewhere to live, but those rent payments weren’t building equity in the property.

That’s one of the biggest reasons I favour buying for people who intend to stay in one place for a significant period.

The Family Who Didn’t Think They Could Buy

One of my favourite memories involves a family who had immigrated to Canada from Central Africa.

They were tenants of mine, renting a house for two or three years.

They were wonderful tenants. Responsible, reliable, and always paying their rent.

Eventually, I asked them a simple question.

“Why aren’t you buying a house?”

They told me they couldn’t qualify for a mortgage.

Initially, I accepted their answer.

But about a month later, I went back and asked whether they’d be willing to investigate the possibility again.

I introduced them to my mortgage broker.

And approximately six weeks later, we were moving them into a home of their own.

Not only were they able to purchase a property, but they were also able to move into a neighbourhood that better suited their family’s needs.

Instead of continuing to pay rent, they began building equity in their own home.

I think about that family whenever someone tells me they can’t afford to buy.

Sometimes they’re right.

But sometimes they simply haven’t explored their options with the right professionals.

Don’t assume you can’t buy until you’ve actually investigated whether you can.

You might be surprised.

You Don’t Need to Buy Your Forever Home

One of the biggest mistakes I see first-time buyers make is trying to buy too much house.

They want the big kitchen, the double garage, the extra bedrooms, the finished basement, and everything else they’ve dreamed about.

And I understand that.

But here’s something I often remind people.

Your first home probably isn’t going to be your last home.

Most of us move several times throughout our lives.

We start with something modest. Perhaps we get married, have children, and eventually need more space. Later, when the children move out, we might downsize again.

There’s nothing wrong with starting small.

In fact, I encourage it.

I’d much rather see a young couple purchase a comfortable, affordable townhouse than stretch themselves financially to buy a large detached home that leaves them struggling every month.

I’ve seen people become what we call house poor.

They have a beautiful house, but they can’t afford to enjoy their lives.

Every unexpected expense becomes a crisis. They’re worried about the next mortgage payment, the next utility bill, or what happens if the car breaks down.

That’s not what homeownership should be.

But there’s another side to this.

I remember showing a one-bedroom apartment in northeast Calgary.

A couple arrived with their young son.

As we walked through the apartment, I realized this simply wasn’t going to work for them.

I remember thinking, Where’s the little boy going to sleep? In the laundry room?

The property might have been affordable, but it wasn’t appropriate for their family.

And that’s just as important.

Buy enough house that you’re happy to come home to it—but not so much house that you can’t afford to live.

Find a good property in a good neighbourhood that meets your family’s needs.

You can always upgrade later.

What Do the Actual Calgary and Airdrie Numbers Tell Us?

I wanted to look beyond my own experiences, so I reviewed historical real estate statistics from the Calgary Real Estate Board (CREB).

The numbers are interesting.

Between the third quarter of 2012 and the third quarter of 2026, Calgary’s total residential benchmark price increased from approximately $392,000 to $569,000.

That’s an increase of about 45%.

In Airdrie, the benchmark price increased from approximately $321,000 to $509,000 over the same period.

That’s an increase of approximately 58%.

Now, those aren’t extraordinary investment returns when you calculate them annually.

And there were certainly periods when property prices declined.

But here’s what those numbers don’t tell you.

While the property was increasing in value, the homeowner was also gradually paying off the mortgage.

That’s a very important part of the equation.

I also looked at a hypothetical 25-year comparison involving a family buying a $400,000 home versus another family renting a comparable property and investing their savings.

Under one reasonable set of assumptions, the homeowners finished with substantially more wealth.

But I want to be careful here.

Change the mortgage rate, the cost of maintenance, the rent, or the investment returns, and the results change.

In some circumstances, renting and investing can actually be the better financial decision.

I don’t want to pretend otherwise.

The important point is that buying a home isn’t simply an expense.

Part of what you’re paying each month is gradually increasing your ownership of an asset.

And over a long period, that can make an enormous difference.

The Couple Who Tried to Outsmart the Market

I remember a couple in northwest Airdrie who decided to sell their house and rent because they were convinced the real estate market was about to collapse.

They figured they’d sell while prices were high, wait for the crash, and then buy another property at a bargain.

It sounded clever.

Except the crash didn’t happen.

Instead, over the following five years, the market approximately doubled.

I still think about that couple.

They sold an asset they already owned, started paying rent, and watched the cost of getting back into the market increase dramatically.

That’s a painful lesson.

Now, don’t misunderstand me.

Real estate prices absolutely can decline.

We’ve seen periods of rapid appreciation and periods when the market slows considerably.

The Calgary-area market experienced particularly strong activity through much of 2020 to 2024 and into 2025.

Markets don’t move upward in a straight line.

But predicting exactly when prices will rise or fall is extraordinarily difficult.

I don’t encourage people to buy houses because they think prices will jump next year.

I encourage them to buy because the property meets their needs, they can comfortably afford it, and they intend to own it long enough for the decision to make financial sense.

That’s a much more reliable strategy than trying to predict the next market correction.

How Long Should You Stay Before Buying Makes Sense?

This is one of the first things I discuss with people deciding whether to rent or buy.

How long do you expect to live in the area?

If you’re planning to move in a year or two, I’d probably suggest renting.

Buying and selling real estate involves expenses.

There are legal fees, potential mortgage penalties, moving costs, and the cost of selling the property.

If you purchase a home and sell it again two years later, those expenses can easily outweigh whatever equity you’ve accumulated.

And if property values decline during that short period, you could find yourself losing money.

But if you’re planning to stay for five years or longer?

That’s a very different conversation.

My general rule of thumb is that if you’re planning to stay for approximately five years or more, buying deserves serious consideration.

That doesn’t guarantee you’ll make money.

Real estate markets fluctuate.

But the longer you own a property, the more opportunity you generally have to reduce your mortgage and ride through temporary market downturns.

For someone planning to stay for 10, 15, or 25 years, I believe the argument for buying becomes considerably stronger.

Is Renting Really More Flexible?

One argument I hear frequently is that renting gives you freedom.

And to some extent, that’s true.

If you’re uncertain about your career, expecting to relocate, or going through a major life transition, renting can make sense.

But I think the flexibility argument is sometimes exaggerated.

Many renters sign 12-month leases.

They can’t necessarily pack up and leave whenever they feel like it without considering their lease obligations.

Homeowners, on the other hand, can decide to put their property on the market whenever they choose.

Of course, that doesn’t mean it will sell immediately.

Market conditions, pricing, and the property itself all affect how quickly a home sells.

And selling involves expenses.

But the idea that renting provides complete freedom while owning traps you in one place simply isn’t accurate.

Both arrangements involve commitments.

The important question is which arrangement best suits your circumstances.

What About Retirement?

This is where the difference between buying and renting can become particularly significant.

Over the past year, I’ve worked with several homeowners who were preparing for retirement or adjusting their housing to suit their retirement years.

Many had owned their homes for decades.

Their children had grown up and moved away.

They no longer needed the large family house.

So they sold it.

Some purchased smaller homes or condominiums that required less maintenance.

And after buying their new property, they still had a substantial amount of equity left over.

That money could be invested to help fund their retirement.

Think about how significant that is.

They spent decades making mortgage payments, raising their families, and enjoying their homes.

Now, later in life, the equity they’d accumulated was providing them with additional financial options.

They could downsize.

They could travel.

They could invest some of the proceeds.

They could reduce the responsibilities associated with maintaining a large property.

Compare that with someone who has rented for 25 or 30 years.

Unless they’ve accumulated substantial investments elsewhere, they may enter retirement with no housing equity and an ongoing rent payment that could continue increasing.

That’s a very different financial position.

Of course, homeownership doesn’t automatically guarantee a comfortable retirement.

Some homeowners refinance repeatedly, carry mortgages into retirement, or fail to save adequately.

And some lifelong renters build excellent investment portfolios.

But in my experience, owning a mortgage-free home can provide tremendous financial security and flexibility in retirement.

When You Walk on the Grass, It’s Your Grass

Not every advantage of homeownership can be measured with a calculator.

There’s something psychological about owning your home.

I don’t think people who have never owned a property always appreciate how significant this can be.

When you’re renting, you’re living in somebody else’s property.

You might love the place, but there are limitations.

You may need permission to paint a bedroom, replace flooring, or make changes to the property.

You might hesitate to invest money in landscaping or improvements because the property doesn’t belong to you.

But when you own your home, something changes.

You start imagining what you could do with it.

Maybe you’ll renovate the kitchen.

Maybe you’ll build a deck.

Maybe you’ll plant a garden or put flowers along the front walkway.

And when you’re outside cutting the lawn, there’s a different feeling.

When you walk on the grass, it’s your grass.

I know that sounds simple.

But it’s significant.

There’s pride of ownership.

There’s a sense of permanence.

There’s the satisfaction of knowing this is your place.

You can make it your own.

And while those benefits don’t show up on a mortgage statement, I believe they’re an important part of why people enjoy owning their homes.

Can You Actually Afford to Buy?

Now let’s talk about something practical.

Just because you qualify for a mortgage doesn’t necessarily mean you should borrow the maximum amount the lender will approve.

I’m constantly encouraging buyers to consider less expensive properties.

I want my clients to enjoy owning their homes.

I don’t want them lying awake at night worrying about how they’re going to make the next payment.

When you’re calculating the cost of homeownership, remember that your mortgage is only part of the equation.

You also need to consider property taxes, home insurance, utilities, maintenance and repairs, and condominium fees if applicable.

I generally like to see people maintain an emergency fund equivalent to approximately three months of their regular expenses.

That way, if the furnace breaks down or the vehicle needs an expensive repair, they’re less likely to panic or reach for a credit card.

Your emergency savings shouldn’t disappear just because you’ve purchased a home.

And you shouldn’t have to sacrifice every other aspect of your life to make your mortgage payments.

The goal isn’t to buy the most expensive house you can qualify for. The goal is to buy the right house at a price you can comfortably afford.

You Might Need Less Down Payment Than You Think

One misconception I encounter regularly is that people believe they need a 20% down payment to purchase their first home.

That’s simply not true for many buyers.

In Canada, eligible buyers can purchase certain properties with as little as 5% down.

For example, on a $400,000 property, a 5% down payment would be $20,000.

You would also need money for closing costs and other expenses, and a mortgage with less than 20% down will generally require mortgage default insurance.

But $20,000 is considerably different from the $80,000 down payment some people assume they’ll need.

There are also programs designed to help eligible first-time buyers save for a home.

The First Home Savings Account, or FHSA, provides tax advantages for qualifying buyers.

And the Home Buyers’ Plan allows eligible buyers to withdraw funds from their RRSPs to purchase a qualifying home, subject to repayment requirements.

These programs won’t make every buyer eligible for a mortgage.

But they can make homeownership more attainable than people initially believe.

Talk to a Mortgage Broker Before You’re Ready to Buy

This is one of the most important pieces of advice I can offer.

Don’t wait until you’ve found your dream home to speak with a mortgage broker.

I’d much rather see someone have that conversation six months or even a year before they intend to purchase.

Why?

Because mortgage qualification isn’t simply about how much money you’ve saved.

Your income, existing debt payments, credit history, and other financial obligations all affect what you can qualify for.

Sometimes paying off a vehicle loan will improve your mortgage qualification more than adding the same amount to your down payment.

A car loan might have a relatively short repayment period, resulting in a substantial monthly payment.

A mortgage is generally amortized over a much longer period.

Because lenders consider your monthly debt obligations, eliminating a car payment or other debt can sometimes make a considerable difference.

But every situation is different.

That’s why I want a qualified mortgage professional involved early.

They can help you develop a plan that puts you in a stronger financial position when you’re ready to purchase.

And remember, lenders will also want to understand where your down payment came from.

I’ve encountered buyers who literally had cash tucked away at home.

While saving money is admirable, large amounts of physical cash can create complications when lenders need to verify the source of your funds.

Keep your savings in a financial institution and maintain proper records.

It makes the mortgage process much easier.

Your First Home Could Become the Foundation for Something Bigger

I remember working with an aviation professional who purchased a modest, somewhat run-down home in Airdrie.

He made improvements to the property.

Eventually, he purchased another home in Calgary.

Then another.

Over time, he began renting out properties he’d previously occupied.

One of his later purchases was a duplex in Calgary, which he renovated to include two legal basement suites.

That gave him four rental units in one property.

The rental income from those properties became an important part of his retirement planning.

Now, I’m certainly not suggesting everyone should become a landlord.

Owning rental properties involves work, financial risk, maintenance, and responsibilities.

It’s not for everybody.

But his experience illustrates something worth considering.

Your first home doesn’t necessarily have to be the end of your real estate journey. It can be the beginning.

You might eventually sell it and use the equity to purchase something larger.

You might downsize later in life.

Or, if your finances and circumstances permit, you might keep it as an investment property.

The important thing is that buying a modest first home can create opportunities you might not otherwise have.

So, Is It Better to Buy or Rent?

Here’s how I would summarize my advice.

If you’re planning to move in the next year or two, renting probably makes more sense.

If your employment situation is uncertain, you don’t have enough savings, or buying would leave you financially overextended, there’s nothing wrong with continuing to rent.

But if you have stable income, some savings, and you’re planning to stay in the area for five years or longer, I think you should seriously investigate buying.

You don’t need to buy the perfect home.

You need to buy a good home that fits your life and your budget.

A modest property in a good neighbourhood can be an excellent place to start.

And remember that client who thought she was driving toward crippling debt?

She’s still living in that home today.

We’re still friends.

What once seemed like an overwhelming financial commitment became the place she calls home.

Sometimes the hardest part of buying your first home is simply getting past the fear and understanding what you can realistically afford.

That’s where good advice makes all the difference.

Thinking About Buying Your First Home?

I’m Glenn Heslop, a REALTOR® with eXp Realty, serving Airdrie, Calgary, Crossfield, Carstairs, and surrounding Alberta communities.

I’ve helped buyers at all stages of life—from young families purchasing their first properties to retirees downsizing after decades of homeownership.

And I don’t believe in pushing people to buy something they can’t comfortably afford.

Sometimes the best advice I can give someone is to wait.

Other times, it’s to help them discover that buying a home is more attainable than they thought.

If you’re currently renting and wondering whether buying makes sense, I’d be happy to help you explore your options.

We can look at property prices, estimated mortgage payments, your down payment, and the types of homes that might work for your circumstances.

No pressure. Just a practical conversation about whether homeownership makes sense for you.

Glenn Heslop
REALTOR® | eXp Realty
The Harley Riding Realtor
Serving Airdrie, Calgary, Crossfield, Carstairs & Surrounding Communities