Apartment starts soar in Alberta as developers capitalize on affordable land

Apartment construction in Alberta has surged over recent months as developers race to build more rental homes. In the first three months of 2025, a record number of purpose-built rental units broke ground across the province. That marks an unusually strong start to the year, and one that surprised many housing observers.

One key reason for the boom is that land in Alberta remains much cheaper than in other parts of Canada. Developers see this as their best chance to build new apartment buildings affordably and still make a profit. With lower land prices, construction costs per unit drop, making large rental projects viable—especially where land is hard to come by in older urban neighbourhoods.

Another driver is support from the Canada Mortgage and Housing Corporation. Its MLI Select program offers loan insurance with lower premiums and longer repayment terms, making it easier for builders to get financing for rental housing. This support helps the economics work even when migration levels have slowed and vacancy rates have softened. The result: Alberta remains a magnet for rental development while other provinces struggle.

Despite slower migration and a cooling rental market, the combination of affordable land and federal insurance tools means Alberta is still seeing strong developer interest. Builders can spread risk across more units at lower cost, making projects viable when they might be too costly elsewhere. That practical setup is fueling the boom.

This surge in apartment starts could help Alberta meet ongoing demand for housing at different price levels. By boosting supply of purpose-built rentals, cities such as Calgary and Edmonton may offer more options for workers, families, and newcomers. Alberta’s fast-growing cities are capturing a wave of investment that sees long-term potential even amid uncertainty.

Still, challenges remain. Building in established neighbourhoods can be slow due to zoning rules and approval delays. While land is cheaper on the outskirts, political and planning barriers hold back more dense construction closer to city centres. If those hurdles ease, we could see even more apartments rising across Alberta in the months ahead.