Calgary Housing Starts – March 2025 Update
Calgary’s housing market is showing signs of a slowdown in new residential construction. Recent data indicates that housing starts dropped from 2,548 last month to 1,717—a decline of 32.61%. But what does this mean for buyers, sellers, and the overall market? Let’s break it down.
Understanding Housing Starts
Housing starts refer to the number of new residential construction projects that have begun within a given period. This metric is a crucial indicator of economic health and future housing supply. A decline often reflects changes in builder confidence, market demand, or broader economic conditions.
Why Are Housing Starts Down?
Higher Interest Rates
Rising borrowing costs have made financing new construction more expensive for builders and buyers.
Market Uncertainty
Builders may be slowing down due to concerns over economic conditions or potential oversupply.
Seasonal Factors
Colder months usually reduce construction activity, but a 30%+ decline suggests deeper causes.
Rising Costs
Supply chain disruptions and higher material costs make new projects less attractive.
Implications for Buyers and Sellers
For Buyers
Less new construction could limit future options, driving up prices if demand stays strong.
For Sellers
Fewer new homes may make existing homes more desirable, boosting resale values.
For Investors
A slowdown in new builds could increase rental demand, improving rental market opportunities.
What to Watch Moving Forward
Building Permit Trends
Declining permits may indicate builders remain cautious.
Resale Market Activity
Slower new construction could make resale homes more competitive.
Interest Rate Changes
Future Bank of Canada rate cuts might reinvigorate new construction.
Final Thoughts
While a 32.61% drop in housing starts is significant, it’s essential to consider the broader economic picture. Whether this slowdown is temporary or a longer-term trend will depend on shifts in interest rates, builder confidence, and market demand.
Work with Greater Calgary Real Estate
For more insights or to discuss how market trends could impact your plans, contact Greater Calgary Real Estate today. Our team is ready to help you navigate the changing landscape.