Housing starts in Alberta in May were at their highest level since 2015.
Construction of new homes continued to be bullish as Alberta’s housing starts (seasonally adjusted at an annual rate or SAAR) climbed 15.2% to reach 46,456 units in May, the highest level since March 2015.
While single family homes ticked up after a short-lived decline in April, the gains were mainly a result of a big jump in multi-family starts in the month.
Averaging 35,100 units, housing starts in the province were up by 4,100 units (+13.3%) year-to-date. In terms of the number of units being built, Alberta posted the largest year-to-date increase of any province.
Meanwhile, national housing starts grew for the second consecutive month, up 8.1% in May with five provinces contributing positively to the monthly gain.
Although new home construction remains on solid footing, we expect rising interest rates to weigh on activity later this year.
About Don Cholak
