Between tight supply in the resale market and rapid population growth, the need for more housing in Alberta has been apparent for some time.

Home builders have responded by ramping up housing starts to levels not seen in a decade.

New building permit data released today provide another way to assess what is happening with regard to home construction and the numbers are encouraging.

The inflation-adjusted* value of building permits issued in Alberta from January to October 2024** was 24% higher than during the same period last year.

As a result, the number of dwelling units created over the first 10 months of the year rose by 34% to almost 43,000. This represents 18% of the units created nationally.

Permits for multi-family buildings led the way at 29% higher, but single-family projects also posted a strong increase of 19%.

Year-to-date permit value was up more in the Edmonton Census Metropolitan Area (CMA) than in the Calgary CMA at 46% and 9%, respectively. Multi-family permit growth was particularly strong in Edmonton, up by 69% compared to 2023

It is a different story nationally, with inflation-adjusted residential permit value up by just 2% on a year-to-date basis. If you subtract Alberta, permit value decreased by 0.3%.

*Monthly estimates for constant dollars are calculated using quarterly deflators from the Building Construction Price Index.

**Because permit value tends to be volatile over short periods, year-to-date data provide a better sense of underlying trends.

As 2024 slides into our collective rearview mirror, our trivia questions for the rest of December are looking back at the most important economic trends of the year. Enjoy our 12 Days of Economic Trivia for 2024.

Answer to the previous trivia question: Alberta’s population growth has been red hot recently with a whopping 204,000 residents added to the provincial population between mid-2023 and mid-2024 (the equivalent of two Red Deers).

Today’s trivia question: The job vacancy rate in Alberta has declined, but remains relatively high in some sectors. Which industry in Alberta has the highest job vacancy rate?