BILD campaign aims to restore housing affordability

By Delon Shurtz - Lethbridge Herald on April 27, 2023.

Herald file photo BILD Alberta has launched its Alberta Built campaign to highlight the province's housing affordability.

LETHBRIDGE HERALDdshurtz@lethbridgeherald.com

Alberta’s reputation for providing affordable homes is being threatened in the wake of dwindling supply, rising construction costs, labour shortages and a rapidly increasing population, says the executive director of BILD Alberta, the voice of the residential construction industry in the province.

“Alberta is known for housing affordability and that’s not by accident,” says Scott Fash.

But unless steps are taken immediately to counter the threats to housing affordability, Alberta may lose that advantage.

Earlier this month the Building Industry and Land Development Association (BILD) launched its Alberta Built campaign to highlight the province’s housing affordability advantage and the steps that are necessary to ensure affordability continues for generations to come. And it’s not just a coincidence the campaign precedes the provincial election by only a few weeks.

“We’ve been able to enjoy housing affordability relative to other provinces for the better part of about 15 years, without much attention from government,” Fash says. “But what we’re seeing, really post pandemic…is that housing is under considerable pressure in some regions, and as a result we’re seeing escalating home prices, we’re seeing escalating rent rates, and we think it’s time all candidates and whoever ends up being the government after May, really starts focusing on housing…making sure that we’re paying attention to prevent us from becoming the next Toronto and Vancouver.”

Fash says being a national leader relies on a number of factors, the most critical of which is co-operation between government and industry.

In 2022, Alberta led the country in population growth with a total increase of 160,000 new residents. But as tens of thousands of new Albertans move to the province every quarter, housing supply is not keeping up with demand.

Housing inventory in Alberta decreased by 45 per cent between 2019-2022, and although rent in Calgary remains less than the national average, it increased by 25 per cent year over year.

Fast says without continued collaborative efforts, affordability is a real risk. Over the past year, construction costs have increased by 14 per cent in Calgary and 16 per cent in Edmonton. Additionally, in the past two years, municipal high-rise development fees have risen by the highest rate nationwide in Calgary and Edmonton – 65 per cent and 49 per cent respectively – compared to a national rate of 29 per cent.

Fash warns that unless supply can keep up to demand, or even surpass demand, costs will continue to rise.

“I think we’re all hopeful that a lot of the supply chain issues are mostly in the rear-view mirror, so we can, hopefully, start seeing those construction costs go down. We can’t keep operating in a world where there’s 15-per-cent annual increases in pure construction costs.”

Fast says BILD Alberta is particularly raising alarm bells in Calgary, where the situation is rapidly deteriorating. But while the same “crushing” supply pressures aren’t being felt in other Alberta cities, they likely won’t escape the same fate as Calgary if something isn’t done soon.

“I think what our concern is, is that it’s only a matter of time before that comes to Lethbridge, or that comes to Grande Prairie or Edmonton.”

To combat rising prices and reduce red tape and other barriers, BILD Alberta is recommending the creation of a single housing ministry. Alberta is one of the only provinces in the country that does not have a centralized housing ministry. The association believes a singular housing ministry would provide consistent cross-government oversight from the lens of maintaining, protecting, and expanding upon housing affordability.

BILD Alberta also recommends: establishing a housing industry advisory panel, and developing housing affordability criteria and an assessment process before implementing policies that impact housing; forming consistent standards for housing and development in Alberta; working with industry to provide a framework that ensures government decisions minimize red tape and barriers; and partnering with industry to tackle the biggest issues and societal challenges such as social housing, infrastructure funding, energy efficiency, and skilled labour shortages, which is one of the biggest cost pressures facing the industry – how to get more people interested in getting into skilled trades.

Last fall, BILD Alberta launched a scholarship initiative, which has so far raised about $7 million to provide money for scholarships to SAIT and NAIT. It also plans to expand partnerships with other institutions across the province.

“The goal is we want to make it so anybody who wants to go into the skilled trades, you can go and we will fund your program to go through that,” Fash says.

For more information on the Alberta Built campaign, visit http://www.albertabuilt2023.ca. BILD Alberta represents over 1,300 local home builders, land developers, professional renovators, suppliers, skilled trades and consultant members.

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