One of the key indicators of economic growth in a particular region is its population.
And an increasing population is one of those good news signs, showing that a region is moving forward.
Alberta happens to be in that zone these days.
According to the provincial government, in the second quarter of this year, Alberta’s population reached 4.5 million, up 62,145 people (1.4 per cent) from the second quarter of 2021. Canada’s population grew by 1.3 per cent over the same period.
But the news gets even better.
Government estimates indicate that by 2046 Alberta’s population is expected to reach over 6.4 million people, an increase of almost two million people from today.
Projections also see the population becoming more concentrated in urban centres, especially along the Edmonton-Calgary Corridor as 80 per cent of Albertans are expected to live in this region by 2046.
These numbers have obvious implications for the province’s real estate sector, particularly for multi-family residential.
According to the Housing Supply Report, released in May by Canada Mortgage and Housing Corporation, Calgary had 8,700 apartment units under construction, approaching highs that were last seen in 2015. Of these 8,700 units, 4,200 are considered primary rental — the largest number of rental units the city has ever had under construction at one time.
Population growth bolsters the housing market in a particular area. With Alberta’s economy rebounding these days, more people are moving here from other places to participate in the economic recovery. They need places to stay and for many renting a place is their initial entry into the housing market.
Population growth takes place in one of two ways. Naturally of course with birth but also by people choosing to be here. And that happens within Canada and abroad.
Alberta has been fortunate to see the curve growing when it comes to net migration to the province.
In the first quarter of 2022, net migration into Alberta was 16,510, compared to 2,919 in the same quarter of 2021, an increase of 465.6 per cent.
Nationally, net migration was 127,034 in the first quarter of 2022 compared to 76,117 in the same quarter of 2021.
Net international migration into Alberta was 11,159, while net interprovincial migration was 5,351.
The numbers for Alberta continue to head in a positive direction and that’s good news for the province’s economy and its housing industry.
Chris Chornohos has a passion for real estate and helping his clients reach their business goals by providing Real Estate Investors and Owners with the first class valuation and advisory services to close more deals. Chris is also an investor, builder and developer. Reach out to Chris today to help with your Real Estate needs.