Calgary's residential construction boom continues to break records, with housing starts now outpacing population growth for the first time in years, according to a new Canada Mortgage and Housing Corporation report.
The city achieved a record 27,952 housing starts in 2024, representing a 13 per cent increase from the previous year and marking the fourth consecutive year of record-breaking construction activity. Perhaps most remarkably, Calgary surpassed Toronto in housing starts during the final quarter of 2024 — a historic first for the Alberta city.
"New construction activity now outpaces population growth, so in that respect, Calgary is doing quite well," said Taylor Pardy, lead economist for Prairies at CMHC.
The construction surge has been driven largely by Calgary's robust economy and record migration levels over recent years. However, the CMHC Spring 2025 Housing Supply Report highlights that the city is now in a unique position where supply is beginning to catch up with demand.
Missing Middle Development Takes Centre Stage
Calgary is leading the way in what housing experts call "missing middle" development, with two-thirds of all housing starts focusing on medium-density formats. This approach fills the gap between single-family homes and high-rise apartments, offering townhouses, duplexes, and low-rise condominiums that provide more affordable options while maintaining neighbourhood character.
The emphasis on medium-density housing reflects Calgary's strategic approach to addressing affordability concerns while managing urban sprawl. These developments typically offer more attainable price points for families compared to detached homes, while providing more space than traditional apartment living.
Market Impact of Increased Supply
The surge in multi-family housing construction is having a moderating effect on price growth across Calgary's residential market. Industry analysts suggest that the increased supply is helping to ease some of the pressure that had been driving rapid price increases in recent years.
The construction boom represents a significant shift for Calgary, which had experienced several years of subdued building activity following the economic challenges of the mid-2010s. The current surge reflects renewed confidence in the city's economic prospects and continued population growth, though at a more sustainable pace.
For prospective homebuyers and renters, the increased housing supply could translate into more options and potentially more stable pricing in the months ahead, particularly in the multi-family segment where much of the new construction is concentrated.
This article is based on reporting by the Calgary Herald. Visit calgaryherald.com for the original report.
