The Alberta government is reporting a record number of new housing starts, with communities in southern and central Alberta seeing sharp increases.
According to the province, construction began on more than 53,000 new homes over the past year, marking the strongest year for housing starts in Alberta’s history and the first time the total has surpassed 50,000. The figure is 14 per cent higher than the previous record set in 2024.
The second quarter of 2025 was the strongest quarter for housing construction ever recorded in the province, with more than 17,000 homes starting construction.
Minister of Assisted Living and Social Services Jason Nixon said the surge reflects Alberta’s continued population growth and efforts to reduce red tape for builders.
“Once again, Alberta is punching above our weight,” Nixon said. “Our province is shattering housing records and building at unprecedented rates, keeping pace as more people than ever before call our great province home.”
Calgary and Edmonton accounted for most of the housing starts, but regional centres posted some of the fastest growth rates.
Housing starts in Grande Prairie jumped to 366 units in 2025, an 89 per cent increase from 194 the year before. Red Deer recorded 405 starts, a 14 per cent year-over-year increase.
Lethbridge also benefited from what officials described as a broader building surge, as developers increasingly looked outside the province’s two largest cities.
Alberta accounted for nearly a quarter of all housing starts in Canada in 2025 despite having less than 12 per cent of the national population. For the second consecutive year, the province led the country in housing starts per capita and was responsible for more than 80 per cent of all starts across the Prairies.
Nearly 20,000 purpose-built rental units started construction across Alberta last year, the highest number in provincial history and nearly triple the level seen a decade ago.
The increase in rental construction contributed to Alberta’s average asking rent falling by almost twice the national average.
Communities outside Calgary and Edmonton continue to rank among the most affordable rental markets in the country, with Grande Prairie placing fourth nationally among small- and mid-sized centres, Red Deer sixth and Lethbridge ninth. Medicine Hat, Lloydminster and Fort McMurray took the top three spots.
