Numbers released today show annual spending on the construction of buildings in Alberta increased last year by 6.8% to $30.6 billion. The growth was driven by a surge in the multi-dwelling component.

Spending on residential construction increased 7.9% to $21.8 billion last year. A 24.2% increase in spending on multiple-dwelling buildings added $2.1 billion to the annual total, offsetting a 4.2% ($490 million) decrease in spending on single-dwelling homes.

Non-residential spending increased by 4.2% last year to $8.8 billion on the back of a 34.6% ($365 million) rise in industrial investment. Spending on commercial buildings was basically flat at +0.4% while spending on institutional/governmental projects pulled back by 2.2%.

Expressed in constant dollars to remove the impact of inflation,* total spending on building construction in Alberta increased by a more modest 2.1% in 2024. Inflation-adjusted spending was, moreover, 24.2% lower than in 2017 (when the current data series begins).

Despite record population growth, inflation-adjusted spending on residential construction was 19.6% lower than in 2017. Non-residential spending was down even more at 31.6% below its 2017 level. The lack of growth compared to past highs reflects the overall economic sluggishness brought on by the pandemic and the battle against inflation.

According to our latest forecast, even though Alberta’s population growth is expected to slow this year, housing starts will remain elevated as the construction sector plays catch-up with past population growth.

*Statistics Canada adjusts for inflation in the construction sector using quarterly deflators from the Building Construction Price Index (18-10-0276-01).

Answer to the previous trivia question: George Washington was the first U.S. President to sign an executive order.

Today’s trivia question: In the Victorian era, mean-spirited Valentine's Day cards were called “___ Valentines.”