New housing data were released this morning on starts and resale prices.

Housing starts* in Alberta hit the second-highest level on record in November, rising to 59,486 (seasonally adjusted annual rate).

The record of 59,924 was set in September 2007 during the housing boom of the mid-2000s.

The number of starts in November was 41% higher than the previous November with the year-to-date average 36% higher than in 2023.

The increase reflects a construction sector that is playing catch-up with two years of very strong population growth in the province.

New construction is tilted toward the Calgary and Edmonton metro areas at 93% of all housing starts in Alberta last month compared to about 66% of Alberta’s total population.

Prices in the resale market have also been on the rise.

According to Canadian Real Estate Association calculations, the price of a benchmark home** increased for the 24th month in a row in Calgary and for the 19th month in a row in Edmonton (seasonally adjusted).

Looking at change over the last 12 months, the benchmark price in Calgary hit $584,300 in November, up 4.4% compared to November 2023.

Edmonton’s benchmark price remained lower than Calgary’s at $403,300, but grew faster at 7.7% higher than a year ago.

Meanwhile, the price gap in favour of Calgary fell for the 6th month in a row, dropping to $181,000.

In both cities, benchmark prices were higher for single-detached homes, townhouses, and apartments.

It’s a different story in Canada’s two highest-price large metro markets of Toronto and Vancouver where the year-over-year benchmark price was down by 0.8% and 1.0%, respectively.

Of the six metro areas in Canada with a population of over one million, three posted year-over-year price increases in November (Calgary, Edmonton and Montreal) and three posted declines (Vancouver, Toronto and Ottawa).

The price growth in Calgary and Edmonton reflects tight supply and strong demand on the back of rapid population increase.

Benchmark price data are not available for smaller centres in Alberta, but the Alberta Real Estate Association’s November report on average prices shows that they increased on a year-over-year basis in not just Calgary and Edmonton, but also Red Deer, Lethbridge, Grande Prairie, Fort McMurray, and Medicine Hat. 

*A housing start is defined as the beginning of construction work on the building where the dwelling unit will be located. This can be described in two ways: 1) the stage when the concrete has been poured for the whole of the footing around the structure; or 2) an equivalent stage where a basement will not be part of the structure.

**The Canadian Real Estate Association calculates the average price of benchmark homes in various markets (including Alberta, Calgary and Edmonton) using the MLS® Home Price Index (HPI). The HPI is based on the value home buyers assign to various housing attributes, which tend to evolve gradually over time. It therefore provides an “apples to apples” comparison of home prices across the entire country. Each month, the HPI uses more than 15 years of MLS® System data and sophisticated statistical models to define a “typical” home based on the features of homes that have been bought and sold. These benchmark homes are tracked across Canadian neighbourhoods and different types of houses.

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: The post-pandemic period of high inflation seems to be behind us, but the cumulative impact remains. Consumer prices in Alberta were 13% higher in October 2024 than in October 2021.

Today’s trivia question: According to Bank of Canada’s Senior Deputy Governor Carolyn Rogers, Canada is in the midst of a productivity emergency. Which province has the highest level of labour productivity?