City housing starts follow provincial trend upward: BILD
By Lethbridge Herald on April 24, 2025.
Alejandra Pulido-Guzman
Lethbridge Herald
The provincial government announced last week that the number of housing starts in Alberta is higher than the first quarter of 2024, which is also the case here in Lethbridge.
Bridget Mearns, executive officer of the Building Industry and Land Development Association (BILD) Lethbridge Region, says the number of housing starts has increased in the first quarter of 2025 compared to the first quarter of 2024.
“Looking at the housing starts specifically, with numbers that we get from CMHAC (Canadian Mortgage Housing Corporation), the first quarter is showing a lot of growth which is always great to see,” says Mearns.
She adds that the 10-year average for housing starts in Lethbridge according to the CMHAC is 147 and within the first quarter of 2025 Lethbridge is sitting at 184, while in 2024 during the first quarter it was sitting at 138 housing starts.
“We do see the rental starts quite a bit below the 10-year average. We are sitting at three versus four last year and the 10-year average is 19. But we look at 2022 it was 162.”
She explains there must have been a number of projects that were coming on board in 2022, and it takes a few years to build those out, so those numbers are not too surprising.
When looking at the housing inventory, Mearns says it’s one of the factors that is driving the prices up as there is more demand than supply.
“The housing inventory has gone up slightly from the first quarter last year. We have 80 versus 75 in 2024, and the 10-year average is 126. So, although the inventory has gone up slightly, it’s still well bellow the 10-year average,” says Mearns.
She explains that the 10-year average price for single family detached houses, which is the benchmark they use, is $458,996 and in the first quarter of 2025 the price has increased to $601,644 compared to last year when it was sitting at $571,785.
“A significant increase, and some of the factors that have played a role in that increase include the cost of land, cost of materials, the supply and demand, and when we talk about affordability, we need to keep an eye on that,” says Mearns.
She adds that when builders are deciding to build a house, they look at what it cost to hold a house while is being build and then while it waits to be sold.
“When they build a house and it sits there waiting to be sold, they have to hold the cost of it,” says Mearns. “That includes paying taxes on the land, waiting for a return on their investment for material cost, that kind of thing.”
In terms of where in the city housing starts are being build, Mearns says all areas of the city are building. Mostly a few houses at a time, other than a whole block being developed at once, but the housing starts are being built steadily.
“West side continues to be where a lot of the building is happening, but also Southbrook continues to see quite a bit of activity, and I believe Blackwolf is still building as well,” says Mearns.
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All fine and dandy if ur one of the lucky ones that can afford a $600,000 home.
Unfortunately this does nothing for those that cannot afford it or the high rent being charged. Govt and municipalities have to build more low income housing or our homeless population will surely increase.