Seasonally-adjusted residential construction intentions in Alberta increased for the second month in a row in June, even after accounting for rising prices in the construction sector.

After bouncing back by 6% in May after a weak showing in April, the inflation-adjusted* value of residential building permits issued by Alberta municipalities grew by another 14% in June.

This won’t eliminate the challenges created by relatively scarce supply facing many home buyers, but it does mean more housing units are coming online than if permit values were going in the other direction.*

Taking a step back from these month-over-month improvements, the trend so far this year has been less favourable.

Over the first half (H1) of 2023, the constant-dollar value of residential building permits was 13% lower than H1 2022 and the number of housing units created was 8% lower.

What’s more, population growth in Alberta averaged 1.1% per quarter in H1 2023 compared to just 0.4% in H1 2022.

If Alberta’s housing supply is to keep up with its population growth, a lot more units will need to be constructed in the months ahead.

*It is always important to check if an increase in total permit value is also increasing the number of units being built rather than simply increasing the cost per unit. Sure enough, the number of new dwelling units created increased in both May and June.

Answer to the previous trivia question: According to Statistics Canada's medium-growth (M2) population projection, net international migration will account for 58% of Alberta’s total population growth between 2023 and 2030.

Today’s trivia question: Where is the deepest building in the world?