{"id":38017,"date":"2025-06-30T07:00:00","date_gmt":"2025-06-30T11:00:00","guid":{"rendered":"https:\/\/www.zoocasa.com\/blog\/?p=38017"},"modified":"2025-07-09T14:45:56","modified_gmt":"2025-07-09T18:45:56","slug":"alberta-new-home-construction","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/alberta-new-home-construction\/","title":{"rendered":"Breaking Ground: Alberta&#8217;s Clear Advantage in New Home Construction"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">As housing affordability deteriorates across Canada, Alberta is standing out for all the right reasons. While Ontario and British Columbia face steep affordability gaps and construction targets, Alberta\u2019s path to restoring balance is more achievable, though not without its own set of challenges.<\/p>\n\n\n<div style=\"min-height:291px\" id=\"datawrapper-vis-j7k0g\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/j7k0g\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-j7k0g\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/j7k0g\/full.png\" alt=\"\" \/><\/noscript><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Current CMHC\u2019s Construction Targets<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">According to the Canada Mortgage and Housing Corporation (CMHC)\u2019s <a href=\"https:\/\/www.cmhc-schl.gc.ca\/professionals\/housing-markets-data-and-research\/housing-research\/research-reports\/accelerate-supply\/canadas-housing-supply-shortages-a-new-framework\" target=\"_blank\" rel=\"noreferrer noopener\">latest report<\/a>, Canada must significantly increase the pace of home construction to return to the affordability levels of the early 2000s by 2035. This means scaling annual housing starts from roughly 250,000 units to between 430,000 and 480,000. The challenge isn\u2019t equally distributed: Ontario would need to increase housing starts by an overwhelming 145.1%, and British Columbia by nearly 56%. By comparison, Alberta\u2019s required increase sits at 33.4%\u2014still ambitious but substantially more manageable.<\/p>\n\n\n<div style=\"min-height:289px\" id=\"datawrapper-vis-USI9f\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/USI9f\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-USI9f\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/USI9f\/full.png\" alt=\"\" \/><\/noscript><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Edmonton and Calgary\u2019s Success Story&nbsp;&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Within Alberta, <a href=\"https:\/\/www.zoocasa.com\/calgary-ab-real-estate\" target=\"_blank\" rel=\"noreferrer noopener\">Calgary <\/a>is projected to require a 45.1% increase in housing starts, from its current annual average of 19,651 units to 28,520 units. Calgary\u2019s affordability ratio (the percentage of income needed to purchase a home) has risen from 27% before the pandemic to 38% today. Even if the city meets its construction target, home prices are still expected to rise 7.3% by 2035. However, Calgary is already showing progress.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Through its \u201c<a href=\"https:\/\/www.calgary.ca\/communities\/housing-in-calgary\/housing-strategy.html\" target=\"_blank\" rel=\"noreferrer noopener\">Home is Here<\/a>\u201d building strategy, the city has implemented or initiated 88% of its 98 housing-related actions. In 2024 alone, it approved 22,500 market homes and 893 non-market homes. In the first quarter of 2025, Calgary delivered 2.5 times more housing starts than <a href=\"https:\/\/www.zoocasa.com\/vancouver-bc-real-estate\" target=\"_blank\" rel=\"noreferrer noopener\">Vancouver<\/a> and five times more than Toronto, highlighting the city\u2019s proactive stance on housing development.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.zoocasa.com\/edmonton-ab-real-estate\" target=\"_blank\" rel=\"noreferrer noopener\">Edmonton <\/a>is even further ahead. It is the only major Canadian city where CMHC reports no need to accelerate current construction. With 16,188 homes built annually, Edmonton is already on track to meet future demand. Its affordability ratio has inched up modestly, from 26% pre-pandemic to 31% in 2024, with a target to return to 30%. Despite stable construction levels, Edmonton\u2019s home prices are still projected to increase by 25.2% by 2035. The city isn\u2019t resting on its laurels. Between 2023 and 2025, it committed to delivering 2,922 affordable housing units, exceeding its initial goal of 2,700. Since 2019, Edmonton has invested over $256 million in affordable housing, unlocking more than $1 billion in combined federal and provincial funding and developing nearly 5,600 units in total.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of Alberta\u2019s most significant advantages lies in its development conditions. Compared to Ontario and British Columbia, it\u2019s easier and more cost-effective to build homes in Calgary and Edmonton. These cities benefit from greater land availability, lower land costs, more flexible zoning rules, and fewer regulatory roadblocks. Edmonton has led efforts to increase residential density, simplifying the development of diverse housing types. In contrast, growth in Toronto and Vancouver is hindered by land constraints, high costs, restrictive zoning, and sluggish permitting processes. A <a href=\"https:\/\/www.bildgta.ca\/gta-housing-study-region-on-the-doorstep-of-compounding-housing-crisis-the-time-for-bold-action-by-governments-is-now\/\" target=\"_blank\" rel=\"noreferrer noopener\">2024 report<\/a> by BILD GTA found that Ontario is now building fewer homes per new resident than at any time since 1972. The cost of government-imposed fees compounds the challenge. In Ontario, municipal housing-related taxes can make up more than 25% of a new home\u2019s price. When including land transfer tax, GST, and HST, these charges can exceed $250,000 per home.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"394\" src=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Edmonton-Zoocasa-750x394.jpg\" alt=\"\" class=\"wp-image-38021\" srcset=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Edmonton-Zoocasa-750x394.jpg 750w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Edmonton-Zoocasa-300x158.jpg 300w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Edmonton-Zoocasa-768x403.jpg 768w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Edmonton-Zoocasa.jpg 1200w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\">The Meaning of &#8220;Affordable Housing&#8221;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When discussing the construction of affordable housing, it\u2019s essential to clarify what \u201caffordable\u201d actually means. According to the CMHC, housing is considered affordable if it costs less than 30% of a household\u2019s pre-tax income. That definition puts Alberta in a relatively strong position\u2014thanks to the <a href=\"https:\/\/www150.statcan.gc.ca\/n1\/pub\/11-627-m\/11-627-m2025020-eng.htm\" target=\"_blank\" rel=\"noreferrer noopener\">province\u2019s higher average salaries <\/a>compared to Ontario and British Columbia, Albertans can stretch their housing budgets further.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This financial advantage is especially significant when paired with Alberta\u2019s lower average home prices. While average home prices in Toronto and Vancouver soar past $1.1 million, they sit at approximately $589,900 in Calgary and $464,277 in Edmonton. The gap also reflects the growing nature of cities. Land constraints and high demand in cities like Toronto and Vancouver mean new developments are mostly limited to dense condo towers. In contrast, Calgary and Edmonton still have room to grow outwards, allowing developers to offer a wider mix of housing types (from condos to detached homes and townhouses), which makes it easier to build more homes and also more inexpensively.&nbsp;<\/p>\n\n\n<div style=\"min-height:325px\" id=\"datawrapper-vis-Ljakq\"><script type=\"text\/javascript\" defer src=\"https:\/\/datawrapper.dwcdn.net\/Ljakq\/embed.js\" charset=\"utf-8\" data-target=\"#datawrapper-vis-Ljakq\"><\/script><noscript><img decoding=\"async\" src=\"https:\/\/datawrapper.dwcdn.net\/Ljakq\/full.png\" alt=\"\" \/><\/noscript><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">The Ripple Effect of Interprovincial Migration<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The housing pressures in Ontario and British Columbia are now spilling over into other provinces. As more residents from these high-cost regions relocate to places like Alberta and Nova Scotia, demand (and by extension, home prices) are increasing in previously more affordable markets. Cities like Calgary and Halifax experienced noticeable declines in affordability as well as increased interprovincial migration since the 2020 pandemic.&nbsp;<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"394\" src=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Vancouver-Suburb-750x394.jpg\" alt=\"\" class=\"wp-image-38022\" srcset=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Vancouver-Suburb-750x394.jpg 750w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Vancouver-Suburb-300x158.jpg 300w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Vancouver-Suburb-768x403.jpg 768w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Vancouver-Suburb.jpg 1200w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\">Kelowna\u2019s Innovation in Action<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Despite the growing strain, some cities are taking the lead with forward-thinking initiatives. Kelowna, British Columbia, has become a national leader in permitting innovation by using AI-powered chatbots to streamline the application process. Where permits used to take between one and six weeks, straightforward applications are now being approved in minutes. Most are processed within two to twenty business days. In 2023 alone, Kelowna issued a record <a href=\"https:\/\/www.kelownacapnews.com\/news\/175-billion-2023-a-record-year-for-kelowna-building-permits-7292686\" target=\"_blank\" rel=\"noreferrer noopener\">$1.75 billion in building permits<\/a>. Of those permits, 84% were for apartments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to the <a href=\"https:\/\/www.bccpa.ca\/getmedia\/e1e634c0-ab3b-4c76-8440-ab4b2cb908f9\/BC-Check-up-INVEST-2025.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">BC Check-Up: Invest 2024 report<\/a>, housing starts in the Thompson-Okanagan region rose by 21.4%, primarily driven by a 39.5% increase in multi-unit construction in Kelowna.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This growth was supported by the improved efficiency of an AI chatbot, which eased staff workloads and set a new benchmark for municipalities nationwide.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Calgary\u2019s Downtown Office Conversion Strategy<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Calgary is also pioneering bold strategies by converting underused downtown office space into residential units. According to its <a href=\"https:\/\/www.calgary.ca\/development\/downtown-incentive.html\" target=\"_blank\" rel=\"noreferrer noopener\">municipal government<\/a>, the program aims to remove six million square feet of office space from the downtown area by 2031. As of mid-2025, Calgary had approved 21 office conversion projects, which translated to 2.68 million square feet, resulting in 2,628 new homes, a 226-room hotel, and a hostel. The latest wave of approvals added more than 1,100 new homes, expected to house approximately 2,000 people. The city\u2019s first completed conversion project, <a href=\"https:\/\/www.calgary.ca\/our-leadership\/articles\/from-offices-to-homes.html\" target=\"_blank\" rel=\"noreferrer noopener\">The Cornerstone<\/a>, transformed an empty office building into 112 two- and three-bedroom apartments, 40% of which are designated as affordable, meaning they were priced 20% below market value.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Toronto Can\u2019t Follow Suit in Office Conversions<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Toronto, by contrast, faces significantly more complex barriers to converting offices into residential units. According to an analysis by<a href=\"https:\/\/www.toronto.ca\/legdocs\/mmis\/2024\/ph\/bgrd\/backgroundfile-247261.pdf\" target=\"_blank\" rel=\"noreferrer noopener\"> Gladki Planning Associates and Parcel for the City of Toronto<\/a>, financial feasibility is a significant challenge. High construction costs, low expected returns, and rising interest rates make these projects unattractive to developers.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Compounding the issue are rigid zoning policies, heritage protections, and a slow approvals process. Additionally, the city\u2019s policy to protect existing office space, particularly near transit corridors, further restricts what can be converted. When it comes to the construction of Toronto office buildings (especially those constructed after 1960), many have structural limitations, such as large floor plates and outdated infrastructure, that make residential retrofits difficult and expensive. Without a cohesive strategy or clear incentives, Toronto\u2019s path toward meaningful office conversion remains uncertain and cost-prohibitive.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"394\" src=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Construction-750x394.jpg\" alt=\"\" class=\"wp-image-38023\" srcset=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Construction-750x394.jpg 750w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Construction-300x158.jpg 300w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Construction-768x403.jpg 768w, https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2025\/06\/Construction.jpg 1200w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\">Ontario\u2019s Housing Slowdown and Push to Build Smarter<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">According to the Financial Accountability Office of Ontario, the province started just 12,700 homes in Q1 2025, a 20.2% drop from the previous quarter and the lowest since 2009. Of these, 80% were multi-unit buildings, such as condos, while 20% were single-family homes. High construction costs and weak sales are slowing momentum.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To counter this, the Protect Ontario by Building Faster and Smarter Act, 2025, aims to accelerate housing and infrastructure by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Standardizing development charges across regions<\/li>\n\n\n\n<li>Removing barriers to the use of innovative building materials<\/li>\n\n\n\n<li>Fast-tracking approvals for transit-related projects<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The province is also investing an additional $400M, raising total infrastructure funding to $2.3B. Leaders across municipalities and real estate sectors have welcomed the plan.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cFor too long, high development charges, excessive red tape, and sluggish approval processes have prevented the construction of homes our communities need. Today\u2019s legislation introduces more than 25 key policy initiatives to speed up housing development,\u201d says Elechia Barry-Sproule, the president of TRREB.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Building Responsibly and the Need for Bird-Safe Design<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While building more homes faster is a top priority, it\u2019s also important to ensure that new developments are safe for both people and wildlife. FLAP Canada states that most new buildings lack bird-safe designs, despite the availability of affordable, proven solutions. While cities like Toronto have adopted guidelines, FLAP calls for province-wide standards to protect migratory birds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Thinking about your next real estate move? <a href=\"https:\/\/www.zoocasa.com\/search\" target=\"_blank\" rel=\"noreferrer noopener\">Start your search today<\/a>! <\/p>\n","protected":false},"excerpt":{"rendered":"<p>As housing affordability deteriorates across Canada, Alberta is standing out for all the right reasons. While Ontario and British Columbia face steep affordability gaps and construction targets, Alberta\u2019s path to restoring balance is more achievable, though not without its own set of challenges. Current CMHC\u2019s Construction Targets According to the Canada Mortgage and Housing Corporation [&hellip;]<\/p>\n","protected":false},"author":157,"featured_media":38034,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"format":"standard"},"jnews_primary_category":[],"footnotes":""},"categories":[1112,181,587],"tags":[],"class_list":["post-38017","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-alberta","category-toronto-real-estate","category-vancouver-real-estate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Alberta is Leading in New Home Construction Rates in 2025<\/title>\n<meta name=\"description\" content=\"Canada must significantly increase the pace of home construction to return to the affordability levels of the early 2000s by 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