theglobeandmail.com
Alberta Rental Construction Boom Outpaces Major Canadian Cities
In the first quarter of 2025, Alberta experienced a record number of purpose-built rental units breaking ground, exceeding Toronto and Vancouver, fueled by affordable land, government incentives, and sustained housing demand; however, bureaucratic hurdles hinder inner-city development.
- How does the CMHC's MLI Select program influence the viability of purpose-built rental projects in Alberta, and what role does land cost play in this dynamic?
- The success of Alberta's rental construction boom is linked to several factors: favorable land prices, government incentives (MLI Select), and sustained demand despite softening rental rates. Calgary, with its median family income of $130,000 in 2022, presents a particularly attractive market for developers.
- What are the primary obstacles hindering the construction of multi-family rental units in established Calgary neighborhoods, and what measures are being taken to address these issues?
- While Alberta's rental market flourishes, challenges remain. Concentrated development in suburban areas highlights difficulties in navigating city planning and permitting processes in established neighborhoods. Streamlining these processes in inner cities is crucial for future growth and more balanced housing development.
- What factors contributed to Alberta's unprecedented increase in purpose-built rental unit construction during the first quarter of 2025, surpassing even major Canadian cities like Toronto and Vancouver?
- In the first quarter of 2025, Alberta saw a surge in purpose-built rental unit construction, exceeding even Toronto and Vancouver. This is driven by relatively affordable land costs and the CMHC's MLI Select program, which offers attractive loan insurance terms. The program incentivizes construction by lowering premiums and extending loan terms, making rental projects more financially viable.
Cognitive Concepts
Framing Bias
The article frames the story around the success of purpose-built rental construction in Alberta, highlighting positive aspects and downplaying potential drawbacks. The headline (not provided, but inferred from content) would likely emphasize the boom in rental construction. The focus on positive quotes from developers and city officials reinforces this positive framing. The challenges in inner-city development are presented later in the article and receive less emphasis.
Language Bias
The article uses predominantly positive language when describing the rental market boom in Alberta, using words like "unprecedented," "attractive opportunity," and "confidence." While reporting challenges, the language tends to frame them as hurdles to overcome rather than significant systemic issues. Neutral alternatives might include more balanced phrasing that doesn't explicitly endorse the development boom.
Bias by Omission
The article focuses heavily on the success of rental development in Calgary and Alberta, but omits discussion of potential negative impacts such as displacement of existing residents due to rising rents or strain on city infrastructure. It also doesn't explore alternative solutions to the housing shortage beyond new construction. While acknowledging challenges in inner-city development, the article doesn't delve into the specifics of these challenges or explore potential solutions in detail. The article also omits a discussion on the environmental impact of expanding urban sprawl.
False Dichotomy
The article presents a somewhat false dichotomy by emphasizing the success of new rental construction in Alberta while only briefly touching on the challenges faced in inner-city development. It suggests that the success in Alberta is primarily due to the CMHC program and favorable market conditions, neglecting other potential factors or complexities. The framing suggests that building in suburban areas is the only viable option due to permitting hurdles, without exploring alternatives or mitigations.
Gender Bias
The article features several male voices (developers, city officials) but does not prominently feature female perspectives in the real estate industry or among residents affected by housing developments. While not overtly biased, a more balanced representation of gender perspectives would improve the article's inclusivity.
Sustainable Development Goals
The article highlights a significant increase in the construction of purpose-built rental units in Alberta, Canada, particularly in Calgary. This addresses the SDG 11 target of making cities and human settlements inclusive, safe, resilient, and sustainable. The increase in rental housing contributes to affordable and sustainable housing options, which is crucial for sustainable urban development. The initiatives by the City of Calgary to streamline the planning and permitting processes aim to further improve the efficiency and sustainability of housing development.