Alberta is experiencing a housing surge unlike anywhere else in Canada, shattering records for the second consecutive year with 54,858 new homes breaking ground in 2025. This represents a remarkable 14% leap from the previous record, signaling a period of unprecedented growth and ambition.
The province now accounts for over one in five of all new housing starts nationwide, a stunning statistic considering Alberta holds roughly 12% of Canada’s population. This isn’t simply luck, according to Alberta’s Housing Minister, Jason Nixon, but the direct result of focused government initiatives and strong partnerships working in concert.
While Alberta thrives, Ontario faces a starkly different reality. Housing starts in the province have declined for the fourth year running, plummeting to 65,376 units – a 12% decrease from 2024. This downturn casts a shadow over ambitious promises made during the 2022 election campaign.
A pledge to deliver 1.5 million new homes within a decade now appears distant, with only a fraction of that goal achieved. Experts point to a complex web of provincial and local regulations as a major impediment to progress, creating significant hurdles for developers.
Minister Nixon believes Alberta’s success lies in proactively dismantling these barriers. “We figured out early that the housing problem was a supply problem,” he explained, emphasizing the commitment to streamlining processes and empowering the construction industry.
The issue isn’t solely about speed, but also about cost. Toronto-based housing advocate Eric Lombardi highlights the substantial financial burdens placed on builders even before construction begins. Development fees in the Greater Toronto Area can easily exceed $100,000 per new home.
These fees, coupled with a 13% Harmonized Sales Tax on new builds, create a significant economic disincentive. Ontario municipalities, facing limited provincial funding, increasingly rely on these development charges as a revenue source, exacerbating the affordability crisis.
Alberta, uniquely positioned as the only province without a provincial sales tax, offers a compelling alternative. This financial advantage, combined with a targeted recruitment campaign – “Alberta is Calling” – has drawn a significant influx of residents from Ontario, particularly young, high-income families.
Tens of thousands of Ontarians have already made the move west, contributing to the demand for new housing and fueling Alberta’s remarkable growth. These newcomers represent a demographic likely to consume more housing than the average interprovincial migrant.
However, some caution against drawing overly simplistic conclusions. Housing expert Mike Moffatt suggests Ontario’s numbers may be influenced by the housing patterns of international migrants, while Alberta’s boom may eventually moderate. Nevertheless, the lessons are clear.
Keeping development charges and taxes at manageable levels is crucial for stimulating housing supply. A high construction tax, effectively what a sales tax on new homes becomes, stifles development and widens the gap between supply and demand.
The contrast between the two provinces is becoming increasingly pronounced, with Alberta demonstrating the power of proactive policies and streamlined regulations. While Ontario grapples with red tape and financial burdens, Alberta is building a future where homeownership is within reach for more Canadians.
