Housing starts cooler but not cold in June
Housing starts in Alberta over the first half of the year were the highest since 2015
By Rob Roach, ATB Economics 21 July 2022 1 min read
Buoyed by a resurgent oil and gas sector and the return of positive population gains from interprovincial migration, seasonally adjusted housing starts in the province came in at an annual rate* of 39,429 units in June.
Although 16% lower than the month before, the construction of new homes in Alberta in June remained 38% higher than the five-year average.
At an annual rate of about 36,000 units, housing starts in Alberta over the first half of the year were the highest since 2015.
Nationally, starts slowed by about 3% in June but were still higher than the five-year average, albeit by 18% rather than the 38% in Alberta.
Inflation and higher borrowing costs will weigh on housing demand and, in turn, on new home construction. At the same time, tight supply and relatively robust population growth will likely keep housing starts in Alberta above the five-year average in both 2022 and 2023.
*The annual rate is the number of units that would be constructed if the pace for the month under consideration was maintained for 12 months.
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