Edmonton’s Housing Boom: A Strategic Response to Growing Demand

Edmonton has made significant strides in tackling its housing supply challenges, recently approving enough residential permits to construct more than half of its housing targets set for the end of 2026. This ambitious initiative aims particularly at addressing the "missing middle" housing — multi-unit dwellings like duplexes, rowhouses, and low-rise apartments designed to offer more flexible options to potential homeowners.

A Driven Push for Growth

The city’s renewed focus on increasing the housing supply comes as part of a three-year target agreed upon with the federal government, emphasizing the urgency of meeting growing demands. Christel Kjenner, director of the city’s housing action team, attributed this surge in construction to several proactive measures. A key factor was the new zoning bylaw that came into effect on January 1, 2024, which allows up to eight residential units on most lots and facilitates various forms of backyard housing—previously termed garage or garden suites.

Kjenner describes Edmonton as a "bright spot" in Canada, highlighting how policy reforms and collaboration with the home-building industry have effectively reduced bureaucratic hurdles. This has enabled a more favorable environment for home construction, thereby addressing affordability concerns within the community.

A Call for Continued Efforts

Despite these accomplishments, Kjenner acknowledges that more work remains. A 2023 report from the Canada Mortgage and Housing Corporation (CMHC) underscored the need for heightened homebuilding capacity across the nation. The report forecasted a potential shortfall of over 3.5 million homes by 2030, prompting Alberta to plan for an additional 20,000 homes beyond its projected constructions.

To support this growing demand, the federal government announced in February 2024 that Edmonton would receive more than $175 million through the CMHC’s housing accelerator fund. This significant investment aims to not only expedite home construction but also focus on developing affordable and climate-resilient housing solutions.

Targets and Achievements

Edmonton is on track to meet its goal of constructing over 35,400 homes by November 2026. Early indications are promising; within the first year, almost 18,200 residential permits were approved, representing just over half of the city’s three-year target. This includes nearly 7,500 permits aimed at developing missing middle housing, achieving about 97% of the goal.

This emphasis on middle housing is crucial for enhancing urban density and increasing affordability. Sandeep Agrawal, a professor at the University of Alberta’s School of Urban and Regional Planning, emphasizes that such housing options cater to a diverse array of needs, making it vital for future urban planning.

Record Construction Starts

Building momentum continues in the greater Edmonton area, which recorded nearly 18,400 housing starts last year — the highest since at least 1972. This marks an increase of 5,200 housing starts from the previous year, according to CMHC data. The surge in construction aligns with a population rise of approximately 117,000 people from 2022 to 2024, a growth that outpaces the entire population of Red Deer, Alberta.

The population increase is attributed significantly to migration, with many individuals and families relocating from other provinces and countries. Agrawal notes that the city’s new zoning bylaws and strategic city planning make it well-equipped to handle this influx.

An Eye on the Future

While the immediate future appears bright for Edmonton’s housing market, uncertainties linger regarding population growth due to impending federal caps on immigration. However, Prairie cities like Edmonton frequently draw migrants due to their robust economies and relatively affordable housing, suggesting that demand for housing will continue.

In conclusion, Edmonton’s strategic approach to increasing its housing supply reveals a commitment to meeting community needs while maintaining affordability. As the city makes substantial progress toward its ambitious targets, it demonstrates the positive impact of effective governance, strategic planning, and community collaboration in addressing housing challenges. As the momentum builds, Edmonton might not only meet but exceed its goals, setting a benchmark for other Canadian cities facing similar issues.