How will Alberta face the challenges of 2024 including affordability and lack of inventory? Are the Edmonton and Calgary markets in danger of overheating?

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. Programs including CMHC MLI Select 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% of units rented at 30% below the median renter income. Both markets could continue to see strong demand in 2024 due to our housing affordability relative to other markets.

Give us a recap of what the BILD AB and the industry was able to accomplish last year. What are its plans for 2024?

BILD Alberta is continuously meeting with the Government of Alberta and since the May 2023 provincial election, have met with 10 ministries. We successfully pushed for significant investments into Alberta’s Land Titles system which addressed delays impacting transactions and overall costs. We also worked closely with government on adoption of the new National Building Code and will be rolling out education and resources in the new year. Beyond that, BILD Alberta and the provincial government are laser focused on housing affordability. Ongoing meetings with government are centred on identifying policies and areas of improvement to ensure housing remains affordable across the province.

How is BILD AB helping members meet these challenges? What is the biggest challenge it is facing?

Shortages in skilled trades have been an issue for the residential construction industry and BILD Alberta membership for decades. It is estimated that 21% of the current skilled labour force will retire by 2030, making this an even greater threat. In addition to the $7 million scholarship fund launched last year, BILD Alberta is in the early stages of implementing its skilled labour force strategy. This will focus on pre-employment training for people entering the industry, promoting the skilled trades, and tackling industry barriers. This challenge will not be resolved overnight and will require a long-term, coordinated effort.

Can you comment on Edmonton’s new zoning bylaw, does this help the new home industry? Is the City of Calgary taking the rights steps to combat lack of affordability in housing. What would you like to see in these markets?

Our industry and the association are comprised of builders and developers who work in both new and existing communities. When implemented, Edmonton’s new Zoning Bylaw should provide more opportunities to develop land and build homes across the city. By streamlining zoning and approvals, the city has provided greater clarity for industry when identifying potential opportunities. This will support greater supply, choice and overall affordability.

The City of Calgary and the development and building industry have been working together to achieve a shared vision for Calgary through the ‘Building Great Communities’ project. From that work, The City has recognized that their policies can add costs to development, which ultimately affect the price of a home. They are actively exploring ways to reduce these costs and increase density. In 2024 we hope to continue working collaboratively to address policies impacting housing affordability and industry capacity province-wide.

How can the industry act to help first-time homebuyers?

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