Welcome to another edition of Market Monday. Today, we’re diving into some exciting developments in Alberta’s housing market, backed by the latest data from the Canadian Mortgage and Housing Corporation (CMHC).
May was a landmark month for Alberta, with a record-breaking 4,100 housing starts. This is part of a larger trend we've seen since the beginning of the year. From January to May, Alberta has seen an impressive total of 17,673 housing starts, marking a significant 50% increase compared to the same period last year. This surge in construction activity positions Alberta to potentially set a new record for homes under construction in a single year.The growth isn't limited to just single-family homes. Alberta has also seen a substantial increase in rental housing starts. From 2021 to 2023, over 25,000 rental units were initiated, which matches the total number of rental units built between 2006 and 2020. This rapid expansion in rental housing is a response to the increasing demand for diverse housing options across the province.Further underscoring this momentum is the data from ATB Financial Owl, which reports a 44% increase in residential building permits issued from January to April this year. Notably, there has been a 36% rise in permits for single-detached homes and a staggering 53% increase for multi-residential dwellings. These figures indicate a robust pipeline of housing projects that will contribute to easing the current housing shortage.With more houses being built, we can expect an increase in the supply of available homes, which is crucial in addressing the ongoing housing shortage. A market with an adequate supply of inventory would typically see less pressure on housing prices. However, given the high demand in our area, it’s clear that even more construction is needed to significantly impact the upward trend in local housing prices.As we celebrate Canada Day, it’s encouraging to see such positive developments in Alberta's housing market. The increase in housing starts and building permits is a step in the right direction towards creating a balanced market where there’s enough housing for everyone.
