Alberta Housing Start Figures Showing Resiliency (Fall 2015)

Alberta Housing Starts Show Resiliency in Face of Adversity

Surprisingly enough housing construction may not be as down as we all think considering the current economic climate and slight drops in residential benchmark prices seen as of late.

As a matter of fact, recently released data shows that Alberta’s real estate market is showing resiliency in the face of adversity – as per usual, I’d like to say. See our complete list of Calgary Real Estate Market Updates today.

The Statistics

Alberta’s home builders started working on a whopping 36,951 new residential properties in September 2015 (S.A.A.R. – seasonally adjusted annualized rates). This figure puts those housing starts six percent higher than in August 2015.

Considering everything that has happened with energy prices, job cuts and what not, this figure is only a few thousand shy of the average of just above 41,000 per month year-over-year.

Without a doubt, housing starts have gone down – that’s a for sure thing – dropping approximately 21.5 percent on a year-over-year basis. However, September of 2014 did happen to have the second highest amount of housing starts out of the entire year to be fair.

The Reasons

Uncertainty in energy markets

• The fluctuation of oil prices and difficulties with new pipeline projects have resulted in thousands of job cuts in the industry, resulting in less consumer spending.

Slower economy

• This is partially tied to energy prices and affecting Alberta’s provincial economy without a doubt. The energy industry stimulates other business both directly and indirectly as well, causing a slower economy across the board.

Reduced inter-provincial migration

• Fewer people are coming to Alberta because there simply are not as many jobs available and as a result less opportunity to make a better way of life. Although, Despite the Economy, Alberta's Population Keeps on Growing.

Then and again, many different industries in Alberta have had their fair share of ups and downs over the years but have always bounced back. According to the housing start figures mentioned above, Alberta’s real estate market isn’t doing so badly considering.

Actually it confirms that Alberta’s residential sector certainly is not facing an impending downfall like many people and recent reports suggest.

Calgary, Alberta, Western Canadian Economics

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