As the Edmonton real estate market enters 2026, one of the most important—and often misunderstood—topics for buyers and homeowners is total cost of ownership. While price trends tend to dominate headlines, the reality is that carrying costs play an equally important role in affordability, decision-making, and long-term financial comfort.
Property taxes are rising—but context matters
One of the most notable changes entering 2026 is the 6.9% municipal property tax increase approved by the City of Edmonton. For many homeowners, this translates into several hundred dollars more per year, depending on assessed value.
While no tax increase is welcome, it’s important to keep this in perspective. Edmonton’s property taxes remain competitive compared to other major Canadian cities, particularly when weighed against overall home prices. However, combined with rising insurance premiums, utilities, and maintenance costs, the increase does add incremental pressure to household budgets.
For buyers, this reinforces the importance of factoring property taxes into affordability calculations rather than focusing solely on purchase price or mortgage payment. For sellers, higher carrying costs can influence buyer sensitivity, particularly at higher price points.
The potential impact of GST rebates for first-time buyers
On the federal side, proposed GST rebates for first-time buyers purchasing new homes represent a meaningful potential offset to rising ownership costs. If finalized, these rebates could remove the 5% GST on qualifying new builds up to a certain price threshold—representing savings of up to tens of thousands of dollars in some cases.
While the legislation has not yet been fully enacted, the expectation of this incentive is already influencing buyer behaviour. Some first-time buyers are choosing to delay new-build purchases until clarity is achieved, creating a temporary slowdown in that segment.
Once implemented, however, this rebate could stimulate demand for new construction later in 2026, particularly in entry-level and mid-range developments across the Greater Edmonton Area. This may also create indirect support for resale homes as construction activity increases and buyer confidence improves.
Why total ownership cost matters more than ever
In a balanced market, buyers are more analytical—and that’s a good thing. Today’s purchasers are comparing not just prices, but monthly and annual ownership costs, including:
Property taxes
Mortgage payments
Insurance
Utilities
Condo fees (where applicable)
Maintenance and repairs
Homes with higher carrying costs must now justify their value more clearly, whether through location, condition, or long-term livability.
For homeowners considering selling in 2026, understanding how these costs impact buyer perception can help inform pricing and positioning. For buyers, a clear view of total cost reduces the risk of overextending financially.
A planning-focused market
The takeaway for 2026 is not that ownership is becoming unaffordable—but that it is becoming more transparent. Edmonton’s relatively low home prices, combined with stable interest rates and potential federal incentives, continue to make ownership achievable for many households.
Those who plan with full cost visibility will be best positioned to make confident, sustainable decisions in the year ahead.
Read the next article in our 9-part series here.
Connect with Ryan and the Real Living team for a personalized consultation. Our data-driven approach can provide clarity on your buy, hold or sell strategy for 2026 and beyond.