Alberta’s new home builders and developers were a busy bunch in May, laying the foundations for 4,113 new homes, making it the busiest month on record for new home starts, according to figures released by Canada Mortgage and Housing Corporation (CMHC). May’s total brings the number of new homes started in Alberta year-to-date to 17,673, a 50% increase over the first five months of 2023 and putting builders on pace to set a new record for starts in 2024. The breakdowns of starts by home type in May (with May 2023 in brackets) are: single-family 1,359 (1,026); semi-detached 323 (305); row/townhomes 478 (463), and; apartments 1,953 (1,296). Alberta’s largest cities contributed 93% of the starts, with 1,830 in Edmonton, a 110% increase year-over-year, and 1,996 in Calgary, consistent with May 2023. "Alberta's significant increase in housing starts underscores industry's commitment and successful collaboration with the Government of Alberta, driving a notable surge in residential construction,” said Saheb Dullet, director of policy and government relations, BILD Alberta Association. “Streamlined processes and reduced barriers enable builders to meet demand more efficiently, ensuring expanded housing options for all Albertans." Figures released by the Alberta government in a release show the growth of housing over the past years, including 25,447 rental home starts between 2021 and 2023; a 44% increase in residential building permits between January and April 2024; $179 million dedicated to building 1,187 units of affordable housing (construction not yet started); $67.5 million to build 435 units of affordable housing (currently under construction) and; $39.2 million for 166 units of affordable housing (completed since December 2023). “Alberta’s government continues to support builders and encourage new residential housing construction by reducing red tape, incentivizing housing construction and supporting innovative strategies to build more homes faster,” said Jason Nixon, minister of seniors, community and social services. On a national basis, the annual pace of starts in May increased 10% over April’s activity, fueled by gains in Montreal and Toronto, said CMHC, adding the seasonally adjusted annual rate (SAAR) of housing starts in May came in at 246,111 homes (the number projected to be started throughout 2024). Robert Kavic, senior economist at BMO, said the trend "is near record highs in absolute terms, and matching the 1970s building boom relative to the size of the adult population.” Broken down, CMHC said the annual pace of multi-unit urban starts increased 13% to 203,141, while single-family urban starts rose two per cent to 42,970. The seasonally adjusted annual rate of rural starts was estimated at 18,395. "The focus for homebuilders remains on multi-unit construction in Canada's major centres, as both the SAAR and trend of housing starts increased in May, following two consecutive months of decline,” said Bob Dugan, CMHC's chief economist. “This was due to growth in actual year-over-year starts, driven by significantly higher multi-unit starts, particularly in Montréal and Québec. While this is good news for housing supply, we do expect downward pressure on starts through the rest of 2024.”
Alberta’s new home builders and developers were a busy bunch in May, laying the foundations for 4,113 new homes, making it the busiest month on record for new home starts, according to figures released by Canada Mortgage and Housing Corporation (CMHC). May’s total brings the number of new homes started in Alberta year-to-date to 17,673, a 50% increase over the first five months of 2023 and putting builders on pace to set a new record for starts in 2024. The breakdowns of starts by home type in May (with May 2023 in brackets) are: single-family 1,359 (1,026); semi-detached 323 (305); row/townhomes 478 (463), and; apartments 1,953 (1,296). Alberta’s largest cities contributed 93% of the starts, with 1,830 in Edmonton, a 110% increase year-over-year, and 1,996 in Calgary, consistent with May 2023. "Alberta's significant increase in housing starts underscores industry's commitment and successful collaboration with the Government of Alberta, driving a notable surge in residential construction,” said Saheb Dullet, director of policy and government relations, BILD Alberta Association. “Streamlined processes and reduced barriers enable builders to meet demand more efficiently, ensuring expanded housing options for all Albertans." Figures released by the Alberta government in a release show the growth of housing over the past years, including 25,447 rental home starts between 2021 and 2023; a 44% increase in residential building permits between January and April 2024; $179 million dedicated to building 1,187 units of affordable housing (construction not yet started); $67.5 million to build 435 units of affordable housing (currently under construction) and; $39.2 million for 166 units of affordable housing (completed since December 2023). “Alberta’s government continues to support builders and encourage new residential housing construction by reducing red tape, incentivizing housing construction and supporting innovative strategies to build more homes faster,” said Jason Nixon, minister of seniors, community and social services. On a national basis, the annual pace of starts in May increased 10% over April’s activity, fueled by gains in Montreal and Toronto, said CMHC, adding the seasonally adjusted annual rate (SAAR) of housing starts in May came in at 246,111 homes (the number projected to be started throughout 2024). Robert Kavic, senior economist at BMO, said the trend "is near record highs in absolute terms, and matching the 1970s building boom relative to the size of the adult population.” Broken down, CMHC said the annual pace of multi-unit urban starts increased 13% to 203,141, while single-family urban starts rose two per cent to 42,970. The seasonally adjusted annual rate of rural starts was estimated at 18,395. "The focus for homebuilders remains on multi-unit construction in Canada's major centres, as both the SAAR and trend of housing starts increased in May, following two consecutive months of decline,” said Bob Dugan, CMHC's chief economist. “This was due to growth in actual year-over-year starts, driven by significantly higher multi-unit starts, particularly in Montréal and Québec. While this is good news for housing supply, we do expect downward pressure on starts through the rest of 2024.”
