Home construction activity in Alberta is something we watch closely at Lane’s Insurance. Not only is it a great indicator of the province’s overall economic momentum as compared to the national average, it’s also a way to figure out whether your home’s value is likely to rise, fall, or stay the same. All of these have implications for home insurance costs.
In June, Alberta recorded 63,346 housing starts, which is a 49% increase over the same month last year. Remarkably, June was the fifth consecutive month with starts exceeding 50,000 units. Over the year to date, housing starts are up 31%, with much of the growth driven by multi-unit developments — particularly rental housing.
Calgary has consistently led the way in Alberta, contributing to nearly half of the province’s year-to-date growth. But it’s not the only city that is booming. Edmonton reached a new monthly record in June, while other regions across Alberta also saw housing starts rise by 34% as compared to the first half of 2024.
This construction boom is largely a response to population growth in the province that has accelerated since 2023. The province’s population grew by approximately 4.4% between July 1, 2023, and July 1, 2024, which is the fastest pace since 1981 and more than double the national average.
In comparison with the rest of Canada, Alberta’s housing start performance stands in sharp contrast. While Alberta has reached all-time highs in housing starts, national numbers are down 4.2% year-to-date and remain only slightly above pre-pandemic levels.
In addition to providing much-needed housing, Alberta’s sustained building activity is giving a boost to the province’s construction job market. Employment in the construction sector has grown by nearly 10% year-to-date through June, which is well above the 1.3% increase recorded nationally.
Experts expect a slow down of housing start activity over the second half of the year, and predictions of around 47,300 starts monthly in 2026.
What do high housing starts mean for current homeowners?
High housing starts come with both advantages and drawbacks for current and potential homeowners.
On the positive side, increased housing construction helps ease supply pressures, which can help moderate home prices and improve affordability. More housing options, particularly rental units and multi-family developments, provide greater choice and can help balance highly competitive markets. Housing starts also signal a strong economy and support jobs, attract investment, and reflect confidence in Alberta’s future.
However, there are also potential downsides. A lot of new builds can temporarily lower property values in some neighbourhoods by increasing competition. For those thinking of or looking to sell, it’s good to keep in mind that high housing starts may result in longer listing times or accepting lower offers. In addition, if too many similar properties hit the market at once, especially in suburban areas, oversupply can become a concern and prices will most certainly go down.
It’s never a bad idea to revisit your home insurance
It’s extremely important to keep existing home insurance policies updated and active. It’s essential to review your policy regularly to ensure it fully reflects your property’s value, as well as the contents within it. Your home insurance renewal period is the best time to do this.
Questions you may wish to ask include:
- Is my payment schedule convenient? Your renewal documents should include your payment schedule and due dates. Policyholders can choose between monthly or annual payments, and you can align payment withdrawals with your payday to ensure funds are available.
- What is my deductible? Your deductible is the amount you pay out of pocket to process a claim. The standard deductible for homeowners is $1,000, however you may negotiate a higher or lower deductible depending on your needs. A lower deductible generally results in higher premiums, while a higher deductible results in lower premiums. It’s a good idea to always keep your deductible amount in savings in case of an emergency.
- Are my belongings fully covered? It’s easy to underestimate the value of your personal property. An up-to-date home inventory checklist helps accurately assess the replacement cost of all your belongings, including your clothing. If you have high-value items such as jewelry, art, or sports equipment, you may also want to check what the special limit is for those. Standard limits for jewelry are often quite low, at typically around $5,000 total.
- What is my liability coverage? At least $1 million in coverage is recommended to cover legal costs and potential settlements should someone be injured on your property.
- Is there anything that might bring down my premiums? Burglar alarms, security systems, and renovations that improve safety, such as updated electrical systems, can help you lower costs.
- Are my outbuildings properly covered? Any external structures such as garages, sheds, and gazebos should each be listed (along with their contents) with accurate insured values.
- What would it cost to fully rebuild my home? Homeowners should consider having their homes professionally evaluated every three to five years.This helps to ensure your policy’s replacement cost reflects current construction costs and home values.
Don’t forget that if you are selling your property, you can choose to transfer your coverage to your new home or give our expert insurance brokers here at Lane’s a call. As brokers, we have access to a number of different policies from Canada’s top providers, which offers you more choice, more flexibility, and often a lot more savings.
There’s no assurance like good home insurance
Lane’s Insurance is a leading Alberta insurance broker offering the very best in home insurance coverage for complete peace of mind. We work for you, not the insurance companies, and therefore can provide non-biased, expert advice and a number of different options from Canada’s most respected home insurance providers. At Lane’s, you will be partnered with a specialist who will be your personal contact for all things insurance. Even though we may not be your provider, we are always your source for good information. To learn more, or to obtain a quote, please contact us at our Calgary, Edmonton, Banff and Alberta offices.
