EDMONTON LEADS IN HOUSING METRICS
In an earlier blog this year, I discussed the Edmonton Region’s rapid and unprecedented population growth. Since writing that post, it looks like growth has accelerated and is set to surpass 2023 levels in 2024. While this influx adds pressure to services like infrastructure and education, the Edmonton Region appears to be responding effectively in one crucial area: housing.
Housing Affordability
As explored in another one of my past blogs, Edmonton continues to rank among Canada’s most affordable for housing. Compared to other jurisdictions, the Edmonton Region offers competitive home prices and rental rates. Although prices are rising, they remain affordable relative to other Canadian cities, giving the Edmonton Metro Region an edge in a challenging market.
In 2020 housing in Calgary was 23% more expensive than in Edmonton. More recently, prices have continued to diverge: the benchmark price for housing in Calgary is now a third higher than Edmonton. It is also interesting that housing in Edmonton remains more competitive than much smaller communities such as Waterloo, Saskatoon or Halifax.
The story is similar for rental housing. For both one bedroom units and two bedroom units Edmonton remains one of the most affordable places in Canada. Again, it appears that Edmonton outcompetes much smaller cities such as Guelph, Hamilton and Winnipeg.
If you look at the ten largest cities in Canada since 2018 you can see that Edmonton has consistently ranked among the most affordable in Canada to rent a one bedroom apartment.
Prices in the Edmonton Region are now rising faster year-over-year than in other Canadian cities, which may lead us to catch up with less affordable cities over time. Monitoring this metric is crucial to maintaining affordability—a key factor in the Edmonton Region’s attractiveness.
Unsurprisingly, rapid population growth typically leads to a surge in housing prices. Yet, Edmonton has been able to maintain a relative level of affordability, which begs the question, how is this happening?
New Housing
A key factor supporting affordability is Edmonton’s steady housing supply expansion. Canadian Mortgage and Housing Corporation (CMHC) data shows the Edmonton Region led the country in new housing starts in 2024, second only to Toronto.
According to data collected by the City of Edmonton, as of the third quarter of 2024, the city had already exceeded its total housing starts for 2023.
Additionally, Remax reports Edmonton saw the most home sales in Canada in the first half of 2024.
Construction trends
Construction costs in Edmonton also remain competitive, especially for more complex projects. This affordability in construction could help explain Edmonton’s strong performance in housing supply. What I find interesting is that this advantage seems to become more pronounced as the complexity of the projects increase.
Another notable trend is the shift in apartment construction. Apartment construction in general has risen steadily over the last 30 years. Around 2009, builders began prioritizing rental units over condominiums, with the rental market consistently expanding. Despite this, absorption has been fairly consistent, averaging fewer than 400 unoccupied units each quarter since 1990.
Housing Diversity
The last data point that I want to highlight is the type of housing available in the region. To meet the needs of a growing population, the Edmonton region is diversifying its housing stock. The addition of row houses, secondary suites, and apartments enhances options for residents and helps support the continued growth we are witnessing. Looking at data for the Edmonton region from CMHC you can see that there is a positive trend in the total number of units being built over the last few years.
Looking closer you can see that different types of housing show different patterns- with increasing amounts of single family, apartments and row housing; and decreasing amounts of semi-detached housing.
When we look at Edmonton city proper we see similar trends with increases in all types of housing except row housing and mixed-use.
Conclusion
Edmonton’s housing market continues to set benchmarks in affordability, supply, and diversity, effectively positioning the region as an attractive destination for new residents. With record-breaking housing starts and a responsive approach to population growth, the Edmonton Region offers a compelling case for balanced urban development. As demand grows, Edmonton’s commitment to expanding housing options across various price points and formats will be crucial for sustaining its momentum. The region’s proactive strategies in housing supply and affordability reinforce its reputation as one of Canada’s most livable cities, ready to welcome and accommodate a thriving population.
Story by: Edmonton Global
