Calgary’s Housing Boom: Record-Breaking Developments Amidst Rising Demand

Calgary, a vibrant city nestled at the foothills of Canada’s Rocky Mountains, continues to capture national attention with its dynamic housing market. In recent reports by the Canada Mortgage and Housing Corporation (CMHC), the city has achieved an all-time high in new residential builds, highlighting a significant uptrend amid soaring housing demands.

A Record Year for Housing Starts

In 2023, Calgary witnessed an impressive surge in housing construction, with total housing starts rising by 13 percent, culminating in 19,579 new units. This growth is particularly noteworthy when juxtaposed against a slight overall decline of 0.5 percent in housing starts across the six major Canadian cities surveyed by the CMHC. Moreover, Calgary led in housing starts per capita, indicating that the city is not only expanding but doing so at an impressive rate compared to its population size.

Factors Fueling Housing Growth

Analysts attribute this boom partly to ongoing low vacancy rates in Calgary’s rental market. Adebola Omosola, a housing economics specialist at CMHC, highlights the influx of new residents as a driving force behind the increase. “The population of Calgary is still growing,” she notes, adding, “and we expect that to remain at least in the short term.” This uptick in residents puts additional pressure on the market, prompting developers to step up production to meet the relentless demand.

Earlier forecasts from the Calgary Real Estate Board echoed this sentiment, with predictions that demand, particularly for rental apartments, would continue unabated.

Construction Industry on High Alert

Despite ongoing challenges such as rising construction costs, labor shortages, and longer project timelines, industry leaders maintain a sense of optimism. Brian Hahn, CEO of BILD Calgary Region, expressed confidence that the construction sector is well-positioned to meet the escalating demand. “Even with concerns about construction costs and timelines, we have kept pace with the need for new builds,” he asserted.

Capacity and Future Projects

Interestingly, CMHC’s report indicates that average construction times have risen for all dwelling types except for apartments. This observation aligns with a noticeable increase in the number of projects currently under construction, signaling that builders may be operating at or near full capacity. Nevertheless, Hahn remains positive that the industry can adapt and sustain its output over the coming months.

“I believe the current pace of construction will continue for at least the next six months,” he stated, noting initiatives aimed at attracting more skilled workers into the trades as vital to maintaining this momentum.

A Shift Towards Multi-Unit Dwellings

A notable trend in Calgary’s housing development is the considerable rise in apartment construction, which accounted for nearly half of all the housing starts in 2023. The federal housing agency reported that 9,034 apartment units commenced construction, marking a 17 percent increase compared to the previous year. A striking 54 percent of these units are classified as purpose-built rentals, underscoring a trend toward providing affordable housing solutions.

Detailed figures reveal that apartments constituted about two-thirds of all units under construction, with the total reaching 23,473. The growth isn’t limited to apartments alone; row homes saw a robust 34 percent increase from the previous year, showcasing a community-focused approach to housing.

Conclusion: A Promising Outlook

In summary, Calgary is in the midst of a transformative phase in its housing landscape. With record-breaking construction figures driven by a growing population and a responsive industry, the city’s future appears bright, albeit not without challenges. As the demand persists, the interplay between supply and construction initiatives will determine how effectively Calgary can navigate its rapid growth.

The proactive measures within the construction sector illustrate a determination to harness this growth for the benefit of all Calgarians, creating a community that’s not only expanding but thriving amid the challenges of a dynamic housing market.