More new home construction good for economy, yet addressing affordable housing more complex than increasing supply: experts

'Build it and they will come' not enough: experts A recent report shows the construction of new homes is on the rise in Alberta... but what about meeting the demand for affordable housing?

A recent report shows the construction of new homes is on the rise in Alberta while Canada's hottest markets for new homes are cooling down, but questions about affordable housing remain.

Industry leaders say Calgary builders and developers remain busy since the hot market of 2022.

"I think we've seen if you look into the numbers, I think you see more multifamily starts and apartment starts in Calgary, when compared to years in the past, but the single detached housing starts in May started to show a catch up, if I can call it that in terms of that pace," said Brian Hahn, CEO, B.I.L.D Calgary Region.

That pace is on the way down for much of the rest of the country.

According to a recent numbers released from the Canada Mortgage and Housing Corporation (CMHC), monthly home starts dropped 23 per cent nationally between April and May.

In Alberta, meanwhile, there's been a 36 per cent increase in new construction.

Calgary continues to be busy with 2,078 housing starts in May, 2023 as opposed to 1,769 during May, 2022 - a 17 per cent rise year over year.

"What it means is that Alberta is actually doing pretty well, overall... What we've seen over the past year, in particular, is a significant increase in population growth driven by migration of people into Alberta, both internationally and from other provinces," said Taylor Pardy, senior specialist, market analysis CMHC.

EASING HOUSING CRUNCH

Some Calgary builders say this increase will help with Canada's housing crunch.

"We like to say supply is the key that unlocks home affordability and home ownership," said Hahn.

However some planning experts say addressing affordable housing concerns for low and moderate incomes requires specific policy responses to complex concerns.

"We need to be building housing that folks can actually afford. We need to be provided initiatives to support more non-market housing to be built," said Nemoy Lewis, assistant professor in the School of Urban and Regional Planning at Toronto Metropolitan University, before adding, "and that remains affordable in perpetuity."

The city of Calgary says its task force is working to increase equitable access to affordable housing with specific recommendations for council.

"Make it easier to build housing and also set some ambitious targets that we can rally around as a city and community and get those houses built," said Tim Ward, housing and affordability task force chair.

He says he wants city planners and developers to be thoughtful about the diverse needs of Calgary's growing population.

"How do we make our housing specific to the needs of multiple different communities? The federal government has really significant immigration targets so we know we will welcome a lot more newcomers to our city. And we need to think about how we serve those communities differently" said Ward.

The task force is also calling for the development of 1,000 more homes at market rate -- and at least 3,000 non-market affordable homes a year.