Calgary narrows gap to restore housing affordability
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The Canada Mortgage and Housing Corporation (CMHC) reported that Calgary, a city in Canada, is reducing the number of new homes it needs to restore pre-pandemic housing affordability.
Years of record construction have decreased the supply gap, and builders are currently scaling up to meet demand. CMHC estimates Calgary needs between 4,000 and 5,000 additional housing units each year to 2036 to reach pre-pandemic affordability levels, a reduction from previous estimates.
The city recorded 27,000 housing starts last year and is on track to build around 19,000 new homes this year. However, total housing starts have declined by more than 20 percent as existing projects finish. CMHC expects construction growth to slow due to rising costs, increased inventories, and economic uncertainty. Some housing advocates worry Calgary won’t maintain the necessary pace.
The city council recently repealed a citywide rezoning policy that allowed for more housing types on single properties, which could impact future housing starts. Despite this, Calgary officials point to growth in building permits across the city and maintain that construction remains strong, helping to balance supply and demand.
