Alberta Housing Starts Drop 21 Percent in 2026

Housing starts in the major cities of Calgary and Edmonton declined by 21 percent during the first six months of 2026 compared to the previous year. Data from the Canada Mortgage and Housing Corporation shows that 22,000 homes were started during this period. Experts characterize the slowdown as a positive stabilization following an unsustainable construction pace in 2025.

Mark Parsons, Chief Economist at ATB Financial, indicates that the correction is helping housing supply catch up to population levels, contributing to falling rents and a slight correction in prices. The shift aligns with a meaningful decrease in Alberta's population growth, which has slowed from the post-pandemic boom driven by federal policies on temporary foreign workers and student visas.

ATB Economics projects the province will start approximately 47,000 homes by the end of 2026, with a potential further decline to 35,000 by 2027. Industry leaders suggest the market is moving closer to satisfying the built-up need for housing while avoiding the traditional boom-and-bust cycles associated with the region.