Alberta sets record for new housing starts: ‘Not just a blip’

Alberta is on pace for a record-setting year when it comes to new home builds.

Between January and July of this year, construction began on nearly 26,000 new homes in the province — a jump of nearly 50 per cent from the same time frame last year, according to data from the Canadian Mortgage and Housing Corporation (CMHC).

“This has been a record-breaking year, and we’ve had many months that are the highest number of permits or the second-highest number of permits in history,” said Lindsey Butterfield, vice president of government relations and policy with BILD Edmonton Metro.

“That’s impressive. I think that is not just a blip, that’s going to be here to stay for the next couple of years.”

In July, construction started on 4,352 new homes in Alberta. That’s compared with 3,366 new home builds in July 2023, which translates to an increase of 29 per cent.

Jason Nixon, Alberta’s minister of Seniors, Community and Social Services, said the “unprecedented growth shows the province is leading the country in having the fewest roadblocks and fastest permit approval times for housing.

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“While construction slowed down in other large provinces, Alberta’s housing sector is booming,” Nixon said. “We will continue to support our partners to make sure we go from permits issued to shovels in the ground, and finally to new homes ready for Albertans.”

According to the BILD Alberta Association, July 2024 marked the most active month for housing starts ever recorded in Alberta.

“Alberta is a place that’s really defined by booms and we’re definitely seeing a boom in housing right now,” Butterfield said.

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Calgary experienced a 52 per cent increase in new home starts in July 2024 (2,471 starts) compared with July 2023 (1,621 starts).

Edmonton’s increase in July 2024 relative to July 2023 wasn’t as large as Calgary’s, but still jumped by nine per cent.

Butterfield said Edmonton’s population increase, as well as changes to the city’s zoning bylaw and parking requirements have made the city more attractive.

“We’re seeing a lot more flexibility for our builders and a lot more opportunity to give people what they want,” she explained.

“I think our building industry in Edmonton has been really successful in using the zoning regulations available to them to really make creative living typologies. So whether that’s adding secondary suites to existing home types, there’s just more flexibility to give people what they want at a price point they can afford.”

Butterfield said while labour shortages are sometimes an issue, that’s not the case right now. She believes the construction industry has seen success with the Alberta government’s “Alberta is Calling” campaign, which provided incentives to skilled workers from other provinces to move to the province.

Butterfield said in order to keep this pace of construction, maintaining a healthy land supply is the number one priority.

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