Alberta's new home construction activity appears to be accelerating again after a relatively slow third quarter. While one data point doesn't define a trend, the recent numbers suggest a pick-up in momentum.

In October, Alberta recorded an average* of 58,072 housing starts**, an increase from the 54,652 units seen in September. Starts were up 7.6% from last October and towered 71% above the 10-year average for the month.

Housing activity in Alberta has been strong since mid-2023, largely fueled by substantial population growth. Activity reached an all-time high of 69,000 units in May of this year before moderating, averaging 50,934 units in Q3, which coincided with a slowdown in population growth. However, the more recent September and October numbers indicate a renewed surge.

The average for the first 10 months of 2025 now stands at 56,389 units, a 20% increase year-to-date (YTD) and the highest average on record for this period. Multi-unit starts remain the primary driver of this year's growth, with a YTD increase of 28%. Single-unit construction is also up, albeit by a more modest pace of 5%.

Calgary drove the majority of the October pick-up, though Edmonton's activity has tempered slightly from its earlier multi-year highs. Nonetheless, both cities maintain a pace of construction above their 2024 levels and 10-year averages. For regions outside of Calgary and Edmonton, although monthly data is limited, starts are collectively up 15% YTD, with notable increases in Grande Prairie and Medicine Hat.

Beyond Alberta, national housing starts are showing some signs of recovery after annual declines consistently since 2022. YTD starts for other provinces have ticked up 1.3% from the first ten months of 2024, although October starts remain about 10% below the 10-year average for the month.

Housing starts are a vital economic indicator (GDP driver), extending their impact beyond just homebuilding. For example, the 33% surge in starts during 2024 contributed to a 13% increase in residential construction spending, accounting for about a quarter of Alberta's real GDP growth last year.

Alberta is on track for a record-breaking 2025 for housing starts, projected to exceed 55,000 units and surpass the peaks of past housing booms experienced in 1978, 2006/07, 2014, and 2024. We expect the pace of home construction to slow next year but still remain above the 10-year average, as builders catch-up to historic population growth and as migrant inflows ease.

*Seasonally adjusted annual rate

**A housing start is defined as the beginning of construction work on the building where the dwelling unit will be located. This can be described in two ways: 1) The stage when the concrete has been poured for the whole of the footing around the structure. 2) An equivalent stage where a basement will not be part of the structure.

Answer to the previous trivia question: As of October 2025, the price of a benchmark home in Canada (as calculated by the Canadian Real Estate Association) was $688,880 compared to $257,000 20 years earlier in October 2005.

Today’s trivia question: When did Home Depot come to Canada?