Population Change and the Housing Market in Alberta

The collapse of oil prices in 2014 seriously weakened the Alberta economy and led to a drop in migration to Alberta from other provinces and other countries. The number of young Albertans leaving the province increased as well. 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. In 2023–24, the population growth rate reached 4.4 per cent, boosting the province’s population to nearly five million.

While welcome, the rapid growth of the population has brought new challenges. Chief among them is the need to provide affordable housing for the new arrivals. 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 housing needs and desires of Canadians moving to Alberta from other provinces are quite different than those of international students or temporary foreign workers. Nevertheless, the housing industry in Alberta has responded well, creating new dwellings at a faster pace than in other provinces experiencing high rates of population growth.

The years ahead are likely to bring new challenges for the housing sector. Criticism of federal immigration policies has already led to major changes. The number of student visas has been reduced and the Temporary Foreign Worker Program has been tightened up. These changes are likely to significantly reduce the rate of population growth. Planning for the future will require housing industry leaders to carefully monitor both demographic trends and government policies.