Despite rising in September, the latest numbers on housing starts point to some moderation in new home construction in Alberta.

Alberta's housing starts averaged almost 51,000** units in the third quarter (July-September), down 22% from the previous quarter and the first significant quarterly drop since 2023.

Starts are, however, still strong compared to last year with year-to-date (YTD) starts up 22% compared to the same nine months in 2024. The growth was largely fueled by a 29% surge in multi-unit dwellings, with single-unit builds rising 8%.

In urban areas (populations over 50,000), purpose-built rental unit construction posted a 43% YTD increase, mirroring a national trend. Alberta, however, stands out with a 9% YTD increase in starts intended for the owner-occupied market compared to a 5% decline in the rest of Canada.

Although 2025 is projected to set a new record for annual housing starts in Alberta, the momentum is anticipated to slow next year due to a cooling population growth.

*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.

**Seasonally adjusted annual rate

Answer to the previous trivia question: The term “rare earth” was coined when an unusual black rock was unearthed by a miner in Ytterby, Sweden, in 1788.

Today’s trivia question: How many square feet is the smallest house in the world?