Calgary is thriving in the spotlight, as Alberta’s most populous city remains one of the few places in the country where the dream of buying a new home remains attainable. In fact, the entire province is expected to continue to star in home affordability through 2024 and even beyond.

Edmonton and Calgary landed Top 10 spots in a recent global study that compares where in the world buying property has become more or less affordable.

The study from UK-based Online Mortgage Advisor has investigated where buying and renting property has become more or less affordable for average workers globally over the last few years, by comparing ever-fluctuating house prices and average salaries. Edmonton comes in second on the list, beaten out only by Johannesburg, South Africa. While Calgary is in the sixth spot.

It reveals that in 2023 the average worker in Edmonton could afford 8.1 extra square meters of property compared to 2018 among 219 other global cities. While Calgary ranks sixth with a 2.9 score.

This matters as Alberta led all provinces in population growth this year. The influx of new residents is fueling consumer spending and housing demand. As of July 1, 2023, an estimated 4.7 million people called Alberta home according to annual population estimates released by Statistics Canada. That is 4.1 percent higher than the same time last year—or an additional 184,400 people.

Calgary keeps pace

The Canada Mortgage Housing Corporation (CMHC) says that in 2023, housing starts in Calgary were up 9.91 percent to 14,141, from 2023’s record of 12,865 in 2022. This was a 3.57 percent increase from the 10,295 recorded in 2022.

Building Industry and Land Development Association – Calgary Region (BILDCR), which groups the region’s homebuilders and land developers, expects strong demand to continue in 2024.

“For 2024, BILDCR members expect continued strong demand for housing and are positioning themselves to respond with all available resources to endeavour to meet demand,” says Brian Hahn, BILDCR CEO.

“Leading into 2024, supply will continue to be the key that unlocks affordability in the Calgary Region and BILDCR will continue to be strong advocates of affordability, innovation and choice for those looking to make the Calgary Region their home,” he adds.

Builders are ready

The industry anticipates a strong start to 2024 due to low MLS inventories and many other key economic indicators pointing that way, says Jayman BUILT COO, Dave Hooge.

“Jayman BUILT has prepared for ’24 with many new showhomes across the province. We are showcasing our tried-and-true award-winning models and introducing exciting new models across the province.”

He does see a “significant” challenge in a labour shortage. “A significant industry challenge will continue to be labour and trade shortages – Jayman is addressing this through trade partner diversification in some cases and in other cases through strategic partnerships with larger capacity.”

Steps to solve labour shortage

Since much of affordability hinges on supply, Hahn says it is critical for new homes to have a stable labour force, and BILDCR is working to keep this edge.

“To support increased labour supply, our membership has been encouraged with the Alberta Provincial Government’s commitment to funding new apprenticeship opportunities across the province,” Hahn says.

In the summer, BILDCR hosted a workshop with Alberta’s Minister of Immigration and Multiculturalism, Muhammad Yaseen, and the Minister of Advanced Education, Rajan Sawhney. “Since the workshop, we have been heartened to observe a strong emphasis on education, training, and careers in the skilled trades in many of the mandate letters for the new Alberta cabinet. This approach is welcomed by both BILD Calgary Region and our colleagues at BILD Alberta,” Hahn says.

He also cites that many of BILDCR’s members offer programs that allow students to gain hands-on experience in the industry, along with providing entry-level positions for those who are diligent and eager to learn. “In this vein, BILD members intend to maintain and grow their collaboration with the Calgary Catholic School Board, Calgary Board of Education, SAIT, and other post-secondary institutions, seeking ways to showcase the remarkable industry we are fortunate to be a part of.”

Prepared for challenges

According to BILD Alberta CEO, Scott Fash, the province is on good footing to withstand the challenges of 2024.

“Industry is responding to the increase in population and demand by increasing housing starts and inventory across the province. Calgary is seeing unprecedented growth and in return we are seeing record breaking housing starts and in particular, the highest number of purpose-built rentals in the City’s history.”

He adds that government programs are helping, including CMHC MLI Select, an innovative new multi-unit mortgage loan insurance product focused on affordability, accessibility, and climate compatibility.

“It provides beneficial lending rates and amortizations of up to 50-years if the project includes below-market rental units, enhanced energy efficiency and/or improved accessibility. This has led to historic levels of new purpose-built rental construction in Calgary and Edmonton, many of which will include 10-25 percent of units rented at 30 percent below the median renter income. Both markets could continue to see strong demand in 2024 due to our housing affordability relative to other markets.”

The Alberta advantage

Alberta’s housing affordability has historically been one of the greatest factors in attracting first-time homebuyers entering the market rather than looking out of province, Fash says.

“Housing affordability is reliant upon a stable and consistent supply. Escalating home prices due to short-sighted government policies, red tape, supply chain issues, skilled labour shortages impacting or delaying increases in housing inventory and supply have obliterated affordability in other major Canadian markets. We can’t lose sight of why housing has remained affordable in Alberta and how quickly it can erode.”

The federal government is lending a hand, as it signed a $228 million deal last November that will fund initiatives at increasing the city’s housing supply.

“We are encouraged to hear the recent news of Housing Accelerator Funding received for The City of Calgary,” Hahn says. “We look forward to hearing further details from The City of Calgary as to how the funds will be deployed to bolster supply and improve affordability.”

It will take careful planning and collaboration between the housing industry and all levels of government to ensure housing remains affordable and realistic for those looking to own their first home.

“Alberta will continue to see unprecedented growth in 2024 as we welcome more residents to boost our economy and fill the gaps in labour shortages,” Fash says. “What remains critical moving forward is collaboration between policymakers and industry to ensure more housing is built without government red tape and added costs. All levels of government are engaged on this issue and prioritizing housing solutions. Industry has been an engaged partner in designing solutions. This action will only increase in 2024, which certainly will increase confidence that we are headed in the right direction.”