Construction of a record number of residential units began in Alberta in 2025, marking the highest level in at least 70 years, as per the most recent data from the national housing agency. The province recorded nearly 54,900 housing starts last year, an increase of over 7,000 from 2024, according to statistics from the Canada Mortgage and Housing Corporation (CMHC). The majority of these projects, about 70%, were focused on constructing multi-unit dwellings such as rowhouses and apartments.
During a news conference on Wednesday, Jason Nixon, Minister of Assisted Living and Social Services, stated, “We have responded significantly to the demand.” Alberta has escalated its homebuilding activities in response to record population growth in recent years. Population estimates from Statistics Canada indicate that Alberta’s population surged by almost 598,000 individuals between 2021 and 2025. Although the growth rate slowed down last year, Alberta still welcomed more new residents than any other province or territory, primarily driven by immigrants and interprovincial migrants.
The increased construction activity comes after a 2023 CMHC report highlighted a looming housing supply shortage in Canada. The report projected a shortfall of over 3.5 million homes by 2030 to maintain affordability levels seen in 2004. To address this issue, the CMHC introduced the Housing Accelerator Fund, aiming to promote faster home construction, affordable housing, and climate-resilient structures.
In response to the housing demand, the Alberta government updated provincial building codes and streamlined regulations. Local initiatives, such as Edmonton city council’s approval of bylaw changes to allow higher-density construction, also contributed to the accelerated building pace. Mark Parsons, chief economist at ATB Financial, described the current construction boom as necessary catch-up work due to the sudden surge in migration.
Parsons anticipates a future decline in housing starts as population growth moderates. However, he highlighted that the increased construction has helped maintain affordability by increasing the available housing supply. While acknowledging the record housing starts, Opposition housing critic Janis Irwin expressed concerns about the lack of relief for low-income renters and residents facing housing unaffordability.
Looking ahead, Parsons emphasized the importance of monitoring the types of housing being developed. The data from CMHC reveals that approximately 38,600 multi-unit dwellings were initiated last year, surpassing the previous high of around 31,400 starts in 2024.
“As we’ve seen an influx of newcomers, it’s logical that we’ve experienced a surge in rental properties entering the market,” noted Parsons. “However, as individuals settle in, there is a growing inclination towards homeownership.”
