Housing struggles to keep pace with those moving to the energy province

The promise of affordable housing is how Alberta is being sold to the rest of the country.

While economists say the population growth we are seeing is good news, “the flip side however, is its starting to put pressure on the housing market. Houses aren’t being built fast enough,” said Alicia Planincic, economist & manager of policy with the Business Council of Alberta.

The lack of housing stock long-term, dimming an otherwise bright spring economic outlook from the business council of Alberta.

Estimating, only one house is being built for every three households coming into the province, which could erode the Affordable Alberta Advantage.

“We are going to see some upward pressure on prices, and this is something that if we expect folks to keep move to Alberta, and I hope that they do, we really need to actually plan for.”

Construction costs and a skilled labour shortage have impacted development.

“Our members are building as fast as we can, but we just have to be mindful that sometimes certain government policies can impact business investment decisions,” said Saheb Dullet, director of policy and government relations at BILD Alberta.

Wednesday, BILD Alberta launching a new campaign, to call on all provincial leaders to work with them, longterm, to keep Alberta affordable.

“There is no one size fits all approach. This must be a collaborative effort.”

Saying right now, there’s no one housing ministry and regulation from one city to the next is inconsistent.

Alberta is one of the most affordable and beautiful places to call home, which is why nearly 160,000 new Albertans arrived last year. The Alberta advantage will not remain without continued collaboration and innovative solutions.
https://t.co/qQ20ADnv9x#abBUILT #abvote #ableg pic.twitter.com/2q2mb4IVoc

— BILD Alberta (@BILDAlberta) April 19, 2023

For the economy as a whole, the energy industry, farming, and tourism showing positive signs. The business council saying there are long-term cracks, and while provincial affordability measures have helped, the benefits could be short-lived, as Alberta sees slow wage growth compared to other provinces and business investment is considered modest.

“That is why you are looking at the forecast of Alberta relative to other provinces, yeah we are seeing growth this year that other provinces aren’t, but we really are just catching up,” said Planincic.

-With files from Carly Robinson, CityNews