Chart of the Week: Rental units fuel home construction boom

The home construction boom in Alberta is a key factor pushing Alberta’s economic growth ahead of other provinces. We’re at record levels of monthly housing starts, and we now expect that 2025 will be a record year overall.

But this time is different from past housing booms, for at least a couple reasons. First, it’s highly concentrated in the largest cities. Calgary home construction took off starting in late 2023, and now Edmonton construction has picked up. Add up the two cities, and they’re at 88% of total housing starts so far in 2025. In the last major construction boom of 2006-08, the share coming from these two centers was around 60%.

Second, it’s more mult-family focused, particularly rentals. As shown in our Chart of the Week, rental units have surged in Alberta and across the country. That said, Alberta has also seen decent growth in home ownership units over the last two years, even as owner-occupied starts have pulled back in the rest of Canada.

The rental supply is needed given rapid population growth and the need for diverse housing options. With migration slowing, and the supply catching up, asking rents have been edging lower in certain Alberta markets, particularly in Calgary.