New Home Starts: The pace of new home starts is expected to slow from the record-high levels of 2024 as the market moves toward rebalancing, but demand will remain strong due to lower interest rates supporting both move-up and first-time buyers.
Increased Supply: The increased supply of new homes, including a large number of apartments, is expected to help ease pressure on resale home prices in 2025, as more consumers have more options available.
Market Rebalancing: The gap between housing construction and household formation is narrowing, leading to a rebalancing of the market. While new home starts will slow, the supply increase will help stabilize market conditions.
Resale Market Influence: The additional supply from new homes is likely to influence the resale market, particularly for certain segments. This could result in less upward price pressure in the resale market.
Regional Distribution: New home starts in Calgary are distributed across various regions, with the largest share (23%) in the Northwest, followed by the Southeast (17%) and Southwest (15%). Apartments make up the majority of new construction (48%).
(Source: CREB 2025 forecast Calgary & Region Yearly Outlook Report)
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