Article – Calgary’s housing market is sprinting off the charts, and I’ve never seen anything quite like it in my 15 years covering this city’s development. Fresh data released yesterday shows our housing starts have shattered records for the first quarter of 2024, with an astonishing 63% increase compared to the same period last year.
The numbers tell a compelling story. Construction began on 4,827 new homes between January and March, according to the Canada Mortgage and Housing Corporation (CMHC). That’s nearly double the 10-year average for first-quarter starts. Multi-family units are driving this surge, with apartment construction up a staggering 87%.
“We’re working at maximum capacity,” says Martin Rodriguez, president of the Calgary Home Builders Association. “The demand is unprecedented, and we’re scrambling to keep pace. Many builders are booked solid through 2025.”
Behind this building boom lies Calgary’s population explosion. The city welcomed over 45,000 new residents in 2023, many fleeing the unaffordable housing markets in Toronto and Vancouver. Our relatively lower housing costs have become our competitive advantage, though that edge is eroding quickly as prices climb.
Walking through communities like Seton and Livingston last week, I was struck by the forest of cranes and constant buzz of construction. These aren’t just numbers on a page – this is transforming Calgary’s physical landscape at a pace I haven’t witnessed since the pre-2008 boom.
The political response has been predictably divided. Mayor Jyoti Gondek points to the surge as validation of council’s density-focused growth strategy. “This demonstrates that our policies to encourage housing diversity are working,” she stated at yesterday’s council meeting. “We’re building the homes Calgarians need.”
Provincial officials, meanwhile, have attributed the growth to Alberta’s overall economic strength. “People are voting with their feet and moving to Alberta because we’ve created the conditions for prosperity,” Premier Danielle Smith said during a Chamber of Commerce address last month.
The reality, as I’ve observed through conversations with developers and economists, is more nuanced than either political narrative suggests. Calgary’s growth represents a perfect storm of factors: relative affordability (compared to other major Canadian centers), strong job creation, federal immigration targets, and municipal policy shifts.
“Calgary is benefiting from a unique convergence of market forces,” explains Dr. Amanda Chen, urban economist at Mount Royal University. “The city has land availability and construction capacity that Toronto and Vancouver simply don’t have anymore.”
However, this building boom brings legitimate concerns. Infrastructure strain is becoming evident across newer communities, where schools are overcrowded and transit connections remain inadequate. Traffic congestion on Deerfoot Trail and Stoney Trail has intensified noticeably in recent months.
Housing affordability – long Calgary’s advantage – is eroding rapidly. The average home price has jumped 15% year-over-year, now sitting at $548,300 according to the Calgary Real Estate Board. Rental rates have climbed even faster, with average two-bedroom apartments commanding $1,850 monthly, up 22% from last year.
For longtime Calgarians like Sandra Mehta, who I spoke with outside a new development sales center in Mahogany, the changes are bittersweet. “We love seeing the city grow,” she told me, “but my kids can’t afford the same opportunities we had. My daughter and son-in-law both have good jobs but can’t save enough for a downpayment with rent being so high.”
The construction industry itself faces significant challenges despite the boom. Supply chain disruptions continue to plague builders, with materials costs remaining 18% above pre-pandemic levels. Labor shortages have become acute, with several developers reporting projects delayed due to insufficient skilled trades.
“We could be building even more if we had the workers,” Rodriguez acknowledged. “We’re actively recruiting across Canada and internationally, but training programs simply haven’t kept pace with demand.”
City planners are scrambling to adjust to this new reality. The Planning Department has added staff to process permit applications, which have increased 42% year-over-year. Wait times for development approvals have actually decreased slightly, a rare bright spot in the administrative side of this growth story.
As Calgary approaches 1.6 million residents, this housing boom represents both opportunity and challenge. The city’s character is undeniably changing – becoming denser, more diverse, and increasingly cosmopolitan. Whether our infrastructure, services, and community fabric can adapt quickly enough remains the question that will define Calgary’s next chapter.
For now, the cranes continue to dot our skyline, concrete trucks rumble through newly mapped streets, and Calgary’s footprint expands ever outward and upward at a historic pace.
