Alberta is set for a substantial increase in housing construction in 2025, a trend that promises to break records and address ongoing housing challenges. The latest data from the Canada Mortgage and Housing Corporation (CMHC) indicates that the province recorded approximately 54,900 housing starts last year, a rise of over 7,000 from 2024.
Record Housing Starts in Alberta
This remarkable surge in housing construction reflects a significant response to the burgeoning demand. Notably, around 70% of these projects consisted of multiple-unit dwellings, such as rowhouses and apartments, highlighting a focus on accommodating the growing population.
Population Growth Driving Demand
Alberta has experienced a rapid increase in population, with Statistics Canada estimating nearly 598,000 new residents between 2021 and 2025. This demographic uptick has been primarily fueled by an influx of immigrants and inter-provincial migration. Despite a slowdown in growth last year, Alberta still led Canada in population expansion.
- Population Increase: 598,000 (2021-2025)
- Housing Starts: 54,900 (2025)
- Multi-Unit Dwellings: 70% of total housing starts
Challenges and Solutions in Housing Sector
The CMHC’s 2023 report highlighted an impending deficit of over 3.5 million homes necessary by 2030 to sustain affordability similar to 2004 levels. As a result, it was determined that Alberta needed to construct an additional 20,000 homes beyond its current pace.
To accelerate the construction process, the Alberta government updated building codes and reduced bureaucratic barriers. Additionally, the CMHC introduced the Housing Accelerator Fund, aimed at incentivizing local initiatives to expedite home building while promoting affordable and climate-resilient housing.
Future Outlook and Affordability
Mark Parsons, chief economist for ATB Financial, characterized the current construction efforts as “catch-up construction.” He emphasized that while increased housing availability helps maintain affordability, the pace may slow as population growth decelerates. He anticipates a future dip in housing starts once the surge in migration stabilizes.
Opposition housing critic Janis Irwin acknowledged the record housing starts but expressed concern that these developments do not adequately address the needs of low-income renters and those priced out of the housing market.
- Expected change in housing starts: Possible decline due to slower population growth
- Current multi-unit dwelling starts: 38,600 (a new record)
- Previous record: 31,400 in 2024
As Alberta adapts to its growing population, the focus on diverse housing solutions will be vital for addressing the various needs of its residents. The future construction landscape will be instrumental in shaping affordable housing access in the province.
