Buying a home? consult an economist

Abstract

Calgary, Alberta and Halifax, Nova Scotia are two dramatically different cities in terms of their economic capabilities. Calgary’s economy is high-growth, driven by the oil and gas industry, while Halifax is a low-growth, service based economy. The future of both Calgary and Halifax looks to be unfolding quite differently. The population of Calgary is young, it is growing and demand is high for all types of housing. Halifax is becoming older, smaller and urbanized, as the young labour force is leaving Nova Scotia in search of employment. Making the decision to move to either Calgary or Halifax should be done by closely examining one’s personal finances and what the local economy has to offer. Calgary’s housing market boasts some of the highest prices but this is bolstered by a supercharged economy, which affords its residents economic freedom and a positive price-to-income ratio. The average price of a home in Halifax is above the Canadian average but as the demographic changes in Nova Scotia, demand for single- detached homes is cooling. Maintaining steady, positive net migration numbers adds to the growth of an economy in three different ways, according to the Conference Board of Canada: productivity growth, growth in the capital stock, labour force growth. Many factors should be taken into consideration before moving with the intentions of investing in a home. A career in oil and gas can be lucrative, generating an affluent lifestyle but an economy such as Alberta’s relies on global demand. Halifax’s economy has historically been low-growth and it appeals to residents relying on its service base. Before buying a home, an economist should be consulted.