Alberta is experiencing a construction boom fueled by a housing strategy initiated under former Prime Minister Justin Trudeau. The policy, aimed at increasing housing supply and density across Canada, set the stage for rapid development, particularly in cities like Calgary.
Despite a change in federal leadership and an upcoming election, Alberta’s housing surge shows no signs of slowing down.
Trudeau’s Housing Strategy
During his tenure, Justin Trudeau prioritized addressing Canada’s housing crisis by increasing the supply of affordable and multi-unit housing.
His administration introduced tax incentives and funding programs to encourage developers to build more homes, particularly in high-demand urban areas. The federal government also partnered with municipalities to remove zoning barriers that previously restricted housing density.
A key element of the housing strategy was a push for “missing middle” housing, including townhouses, duplexes and low-rise apartment buildings, which were seen as an alternative to single-family homes.
To accelerate development, the federal government also released a catalogue of standardized housing designs in early 2025, featuring blueprints tailored to Alberta’s climate and construction standards.
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While the future of these initiatives remains uncertain under new leadership, the momentum they created has already set off a chain reaction, particularly in Alberta, where housing development has reached unprecedented levels.
The Housing Boom in Alberta
The most significant impact of the housing strategy has been in Alberta, where construction has soared. According to data from the Canada Mortgage and Housing Corporation (CMHC), housing starts in Calgary jumped by 44 percent in February 2025 compared to the previous year. The city saw 2,407 housing starts last month, up from 1,674 in February 2024.
This surge follows Calgary’s citywide rezoning approval in May 2024, which changed single-family zoning regulations to allow for multi-unit housing developments. The change triggered a wave of building permit applications, leading to an influx of infill housing projects in older neighbourhoods.
However, while Calgary has seen rapid development, other Alberta cities have not kept pace. Edmonton, Lethbridge and Red Deer all reported a decline in housing starts last month, indicating that the housing boom is concentrated in specific areas rather than province-wide.
Mixed Reactions from Residents
The construction boom has not come without controversy. Some Calgarians, particularly in older neighbourhoods, have expressed concerns about the increasing density. In communities like Bowness, residents have raised issues regarding traffic congestion, parking shortages, and the impact of large multi-unit buildings on privacy.
Despite these concerns, city officials and housing advocates argue that increasing housing supply is the only way to address affordability challenges. A recent report from Rentals.ca found that Calgary saw the largest decline in rental prices among major Canadian cities, with one-bedroom units dropping by 7.2 percent over the past year.
Long-Term Implications
While Calgary’s housing boom is in full swing, experts warn that the long-term sustainability of the trend depends on continued investment and policy support. Without a clear national housing strategy moving forward, some fear that developers may slow construction once the immediate demand is met.
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