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<\/a>Photo:\u00a0laiquocanh<\/a> \/ Adobe Stock<\/em><\/p>\nLast year brought about several positive economic milestones for Alberta as the province\u2019s new multi-family home sector experienced growing levels of starts and sales.<\/p>\n
A new Alberta State of the Market report released by Zonda Urban for Q4-2021 shows that 2021 was a year of recovery for Alberta\u2019s economy while both new multi-family home sales and prices grew in the province\u2019s two major cities.<\/p>\n
\u201cImproving economic conditions have had a positive effect on the new multi-family home market
\nthroughout the year,\u201d said the report. \u201cYearly sales totals in both Edmonton and Calgary increased in 2021.\u201d<\/p>\n\n
According to Zonda Urban, Alberta reported a 5.9 per cent increase in annual economic growth in 2021, and recorded $561 million in total venture capital investment by the end of the year, surpassing $450 million in investment by September. The province\u2019s many solar projects have attracted international investment and job creation, while Alberta produced a record 1.32 billion barrels of oil in 2021 as global demand strengthened. Unemployment rates dropped in Calgary and Edmonton during Q4-2021 as the population growth rate in both cities returned to pre-pandemic levels.<\/p>\n
As multi-family housing starts and building permit values trended upward in 2021, Alberta experienced a positive net migration gain of 16,690 people, the highest amount since 2014.<\/p>\n
\u201cPositive net migration totals in Alberta are expected to continue as other major housing markets in Canada become more expensive,\u201d said the report.<\/p>\n
Housing starts increase in Calgary and Edmonton<\/h3>\n
In Alberta\u2019s biggest cities, housing starts were on an upward trend last quarter.<\/p>\n
From Q3-2021 to Q4-2021, Calgary\u2019s total housing starts increased 37 per cent and were up 14 per cent in Edmonton. Most starts were for apartment units, totaling 2,280 starts in Calgary and 1,411 starts in Edmonton last quarter.<\/p>\n
\u200b\u200bTotal housing starts across all sectors equaled 11,688 Calgary starts and 9,039 Edmonton starts in 2021, up 26 per cent quarterly and 21 per cent yearly between both cities.<\/p>\n
On a yearly basis, building permit values have also increased.<\/p>\n
Total Alberta residential building permit values dropped five per cent from Q3-2021 to Q4-2021, but increased 39 per cent on a yearly basis. Calgary and Edmonton accounted for 83 per cent of the province\u2019s building permit values last quarter.<\/p>\n
The total residential housing investment for Q4-2021 in Alberta equaled $3.17 billion, 27 per cent lower than Q3-2021.<\/p>\n
Buyers snap up new townhomes in 2021<\/h3>\n
New townhomes in Calgary and Edmonton had a good year for sales in 2021.<\/p>\n
In 2021, Calgary logged 3,505 new home sales, a 25 per cent increase from 2020 and the highest yearly total since 2014. Townhomes accounted for 1,842 sales in 2021, the highest recorded total since Zonda Urban began tracking the market, said the report. On a quarterly basis, total sales fell nine per cent compared to Q3-2021 but increased 13 per cent from 2021.<\/p>\n
For all housing types, the \u200b\u200baverage price per square foot and the average unit price for a new home in Calgary increased 1.8 per cent quarterly. In Q4-2021, it cost $669 PSF for a new concrete condo, $375 PSF for a wood frame condo and $272 PSF for a townhome.<\/p>\n