Record Housing Starts Propel Calgary’s Construction Boom Despite Labor Shortages and Unmet Demand
Calgary’s construction industry is experiencing record housing starts, despite concerns about labor shortages. In January, nearly 2,000 homes were built, marking a 51% increase from the same month last year. Single-detached homes rose by 61%, while other types of housing grew by 48%. However, the city’s population growth has caused demand to remain much higher than the supply of homes, meaning Calgary is still not meeting the full demand for housing.
Construction activity reached an all-time high in 2023, driven by migration to the city. Though Calgary is seeing an increase in housing starts, demand continues to outpace supply. In 2024, the city is projected to hit over 25,000 housing starts, compared to about 17,300 homes started in 2023.
Calgary has been able to manage these challenges better than other cities in Canada, largely because it has more available land. Still, construction timelines have been extended, and the labor shortage continues to make building slower. The federal government has pledged $228 million to speed up the creation of more housing units, aiming to build over 6,800 homes in the next three years and 35,000 homes in the next decade. Despite these efforts, Calgary still faces a significant housing shortage, with experts noting that Canada needs 3.5 million more homes by 2030 to improve affordability.
Adapted from recently featured information in a Calgary Herald article highlights what we all feel is happening when shopping for a new home in Calgary or Okotoks.
Some information has been gathered, and opinion formed from: https://calgaryherald.com/business/local-business/calgary-housing-starts-record-highs-demand-higher