Photo : X / Calgary Sun

Calgary and Edmonton Lead Housing Growth in Canada

Calgary and Edmonton are emerging as the leaders in Canada’s housing market in 2025. Both cities are experiencing a remarkable increase in housing starts, meaning more new homes are being built compared to other Canadian cities. Builders are responding to strong demand, a growing population, and the need to provide both rental and ownership options for residents. Calgary has reached record levels of new home construction, while Edmonton has also shown a significant increase from previous years. This surge in construction demonstrates that Alberta’s two largest cities are driving the nation’s housing growth and setting trends for other regions.

Factors Driving the Housing Boom

Several reasons explain why Calgary and Edmonton are leading in housing construction. The population in both cities continues to grow as people move for work, education, and lifestyle opportunities. This growth naturally increases the demand for homes, prompting developers to invest in new projects. Alongside population growth, the need for rental housing has also risen. Many residents, especially in Edmonton, have faced high rental prices for years. Developers are constructing new rental apartments and townhomes to provide more options for tenants.

Government support has played a key role in encouraging builders. Policies and programs aimed at increasing housing supply have made it easier for developers to start projects and reduce delays. Developers are also investing heavily in both single-family homes and multi-family complexes. These projects are designed to meet the needs of a growing population while providing modern, well-built, and sustainable housing options.

Rising Home Prices

Even as more homes are being built, home prices in Calgary and Edmonton remain high. Calgary has seen consistent increases in the average cost of homes, reflecting strong demand and limited availability. Edmonton has also experienced rising prices, making it challenging for some residents to afford a home. This combination of increased housing supply and high prices highlights the difficulty of balancing construction growth with affordability. Buyers may find more choices available, but many still struggle to enter the market, especially first-time homeowners.

Effects on Renters

The rise in housing starts is expected to help renters in the long run. With more rental units being built, the rental market may become less competitive, which could stabilize or even lower rental prices in certain areas. Edmonton, in particular, is likely to see some relief as new apartments and complexes become available. However, it will take time for these new units to fully meet demand, and renters may continue to face high prices until enough housing is completed and available on the market.

Challenges for the Housing Market

Despite the strong growth in housing starts, there are still challenges to overcome. Housing affordability remains a concern, especially for families and low- to middle-income residents. Rising construction costs, including materials and labor, can further increase the price of new homes. Builders must manage these costs to ensure homes remain accessible while maintaining quality. Cities also need to ensure that new developments are well-planned. Homes must be located near schools, transportation, and community services to meet residents’ needs effectively.

Future Outlook

Looking ahead, the housing market in Calgary and Edmonton is expected to continue growing. Developers are likely to maintain high levels of construction to meet the ongoing demand. Government support for housing projects is also expected to continue, encouraging more building activity. At the same time, city planners and policymakers will need to focus on maintaining affordability. Providing enough housing for all income levels will be essential to ensure that growth benefits both buyers and renters. If managed well, the increase in housing supply could create vibrant, sustainable communities in both cities.

Calgary and Edmonton are leading Canada’s housing growth in 2025, with new homes being built at record levels. Population growth, strong demand for rentals, government support, and developer investment are driving this expansion. However, home prices remain high, and affordability is still a challenge for some residents. Renters and buyers will benefit from the increased supply over time, but careful planning and continued investment are needed to make housing accessible to everyone. The experiences of Calgary and Edmonton may also serve as examples for other Canadian cities looking to expand their housing markets and meet the growing needs of residents.