Record-breaking Year Expected for Alberta Housing Market

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Economy News

Alberta,Housing Market,Record-Breaking

The Alberta housing market is expected to have a record-breaking year in 2024 due to unanticipated demand and population growth. Despite this, there is still a housing gap of 130,000 to 170,000 dwelling units in the province.

, which represents Alberta developers and residential builders, expects 2024 will be one for the record books after the housing market soared in February to heady heights, said CEO Scott Fash.

Alberta’s housing deficit is an accumulation of shortfalls and ignored markets. The three-legged stool of difficulties, according to Fash, are the ongoing skills and labour shortages, land development and infrastructure costs, and municipalities attempting to struggle with innovations geared to climate change and accessibility.

There is no “silver bullet” remedy, he said, but CMHC’s MLI Select program geared to rental property owners is starting to address housing market shortfalls in 2024 with its insured mortgage for MURBs of five units or more and 95 per cent loan-to-value financing and up to 50 years pay off. CHRA commissioned Deloitte Canada to look at community housing, finding that 371,600 new community housing units were needed by 2030 to reach the Organisation for Economic Cooperation average of seven per cent of national housing stock. Deloitte reports by 2030, Alberta will need approximately 44,000 new affordable housing units. The need is 31,000 more units than the Conservative’s plan accounts for.

Areas such as Calgary and Edmonton are seeing the bulk of residential construction, agrees Fash, while mid-sized towns are not seeing the same activity despite having needs and offering lower costs.Network capital funding manager Kabir Shahani said: “There are programs but there are also gaps.”

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