As expected, the pace of new home construction in Alberta has slowed from the record levels seen last year. But even with the cooldown, the level of activity remains robust.

At over 44,000* for the second straight month in February, the number of housing starts in Alberta remained about 20% lower than the 2025 average. The pullback in starts can be linked to stronger inventories and slower population growth.

Starts in the rest of Canada did not experience the same surge as they did in Alberta last year and are holding near last year’s average to start the year, led by a spike in Quebec.

*All housing starts in today’s Twenty-Four are expressed on a seasonally adjusted annual rate basis.  

As of our December forecast, we are expecting housing starts in Alberta to average 45,000 this year compared to 54,900 in 2025. While down from the previous two years, the 2026 total will be well-above the 10-year average of 33,900 and reflects the fact that builders are still playing catch-up from the population boom.

Starts were higher in Edmonton (19K) than Calgary (17K) last month. Multi-unit projects (semi-detached, row, and apartment) continued to dominate in both cities at over two-thirds of total starts.

In terms of the price of new homes, there has been some downward movement in Statistics Canada’s New Housing Price Index. After edging up in 2024, the index has cooled somewhat since then in Calgary and Edmonton (the two Alberta markets for which data are available), reflecting increased supply and a cooldown in demand, but remains much higher than before the pandemic.  

We see a similar trend in the resale housing market with benchmark prices down from their recent peaks, but still strong compared to before the pandemic. House prices in Alberta have not seen the kind of correction experienced in markets like Vancouver and Toronto.

At the same time, while it has narrowed, the affordability advantage enjoyed by Alberta over higher-priced markets in B.C. and Ontario remains firmly in place and will continue to support Alberta’s population growth from net interprovincial migration.  

Answer to the previous trivia question: St. Patrick’s Day is celebrated on March 17 because it marks the traditional anniversary of Saint Patrick’s death around 461 AD.

Today’s trivia question: When did the U.S. sitcom “Full House” premiere on ABC?