Alberta Housing Completions Lag Record New Household Formation
The simple fact is that people need roofs over their heads - this a basic physiologic and safety need.
I have seen more house building activity in Calgary in 2023 than I have at any time in the previous 5 years and builders in Calgary are now struggling to keep up with the demand: on average, 4 new homes are completed for every 10 families. However, in the face of this unprecedented demand, builders cannot simply "open the taps" and build unlimited housing as needed.
Building takes years; land must be acquired, design work, and planning and approval process must be navigated before projects are even shovel ready. Not to mention that Alberta already has a construction trade shortage, which is only going to get worse and more expensive as more builders compete for the same limited resources.
Addressing the many supply constraints requires a multi-faceted approach involving policymakers, developers, investors, and other stakeholders - something that continues to remain illusive to crack the "supply issue" nut.
So then what is going to happen? I think we are going to see continued price increases as demand continues to grow and supply remains stagnant. Calgary condos are already up 6.8% in 2023 and this is just the beginning.
Get in touch to learn about the best investment opportunities I am seeing.