Condo fees have increased at a compound annual rate of over 8 percent from 2010 to 2023, according to available data. This growth is partly due to underfunded building reserves and artificially suppressed monthly budgets. As a result, condo fees can average around 75 to 85 cents per square foot in many markets.
For a 1,000-square-foot unit, this translates to around $800 per month in condo fees. Lenders only consider 50 percent of these fees when calculating debt ratios, but this still affects the home price that buyers can afford. For example, a $400 condo fee can reduce the home price that a buyer can afford by nearly 13 percent.
This has significant implications for Calgary buyers, sellers, and investors. As condo fees continue to rise, they can impact the resale value of condos and the purchasing power of buyers. Calgary buyers need to carefully consider these fees when making their purchasing decisions.
Sources: Financial Post