Report: Economic and population growth surges Calgary’s housing prices

After the pandemic, a huge surge in the economy and a population boost, created a big boost in house prices, a new report says. Jacqueline Wilson has details.

After the pandemic, there was an increase in economic growth and population in Alberta, and this has led to an increase in demand and prices in the housing market.

That’s according to a new report by the University of Calgary School of Public Policy.

“Recent global events, including the war in Ukraine, led to an oil price turnaround that has boosted the Alberta economy and, once again, made the province a desirable destination for residents of other provinces as well as newcomers to Canada,” the report states.

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From 2023-2024, the population growth rate reached 4.4 per cent, boosting the population to nearly five million.

In response, there’s been a push to meet demand.

“Meeting the housing challenge has been exacerbated by a shortage of skilled labour in the construction trades as well as zoning restrictions and land availability. It is further complicated by the varying needs of different classes of migrants,” the report states.

According to the Canada Mortgage and House Corporation (CMHC) Alberta saw a record 32 per cent increase in housing starts year-over-year.

The current demand might decrease in the future because of changes to national immigration policies and the Temporary Foreign Worker Program.

The average price of real estate in Calgary is around $730,000 according to the RE/MAX.