Calgary, AB, June 6, 2024 – Calgary’s population has skyrocketed over the past year, welcoming over 96,000 new residents – and with a rapid rise in population comes an increase in demand for goods and services, notably housing. A new report today from the Calgary Chamber of Commerce, entitled Home Economics: Unlocking Growth through Housing Solutions, raises concern over waning housing affordability in Calgary and offers recommendations to all levels of government to address the housing crisis and curb the pace at which house prices are rising. As our economy grows, businesses need our talent pool to grow – which is only possible if we have the infrastructure to support our evolving city.
“We know that for our economy to prosper, we need to set people up for success – and that means we need appropriate and affordable housing. Affordability has long been a part of Calgary’s competitive advantage, but with housing demand outstripping supply, that affordability is at risk,” says Deborah Yedlin, CEO of the Calgary Chamber of Commerce. “With this report, we call on all levels of government to collaborate on solutions to address housing affordability and ensure our economy can continue to flourish.”
To meet Canada’s demand for housing, we need to double homebuilding rates from 240,000 to 500,000 per year. However, builders face significant challenges to access the labour, materials, capital and land required – all of which have become less available and more expensive. As a result, housing starts across the country have been relatively flat while demand rises, resulting in a dramatic increase in the cost of housing.
“Currently, one in five Calgary households are unable to afford where they live,” says Yedlin. “If we want to have a vibrant and prosperous economy with an engaged and growing labour force, we need to ensure everyone has a dignified place to live, regardless of their income level, background or distance to transportation infrastructure.”
The report offers several recommendations to all three levels of government to move the needle on addressing the housing crisis across Canada. Key recommendations include:
- Expanding our talent pool to address key labour gaps, including through a focused immigration stream for tradespeople and supporting training and apprenticeships.
- Investing in socialized housing, including through direct support and private-public partnerships to develop and maintain non-market housing.
- Reducing red tape and bureaucratic burden, including by lowering the direct and indirect cost of new builds and accelerating approval timelines.
Governments are starting to address these concerns: Canada launched its Housing Plan; the provincial government committed to jumpstart new builds in Budget 2024; and Calgary City Council has recently made changes to its zoning.
Quick Facts:
- In the past year, Calgary has welcomed 96,000 new residents and leads the country in population growth.
- The Canadian Mortgage and Housing Corporation estimates that 3.5 million housing units are needed over 2030 baseline to restore affordability to 2005 benchmark rates.
- We are approximately 260,000 units short of the 500,000 housing starts required annually to achieve Canada’s Housing Plan.
- Rental vacancies in Calgary dropped to 1.4% in October 2023, down from 5.9% in October 2021.
- Canada needs more than 500,000 additional construction workers by 2030 to meet housing demand. 72% of Calgary construction firms cite considerable labour shortages.
- Canada’s stock of social (non-market) housing represents only 3.5 per cent of the total housing stock, 655,000 units, placing us at approximately half of OECD and G7 averages.
– 30 –
About the Calgary Chamber of Commerce
The Calgary Chamber of Commerce exists to help businesses reach their potential. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city.
Media opportunities:
For media inquiries, please contact Brittany Brander, Manager, Public Relations & Communications, at media@calgarychamber.com.
