Red Deer’s housing starts have seen a modest increase this year, yet the residential construction sector believes the city is falling behind comparable cities in Alberta such as Lethbridge and Grande Prairie. According to a recent report by the Canadian Mortgage and Housing Corporation, housing starts in Red Deer rose by seven percent in August compared to the same period last year. Despite this uptick, Chris Windrim, the executive director of Building Industry and Land Development Association Alberta (BILD) Central Alberta, expressed concern that the city is not keeping up with its size in terms of housing starts per capita.
Windrim highlighted that Red Deer, as the province’s third-largest city, lags with only 2.8 housing starts per 1,000 residents, in contrast to 3.7 in Lethbridge and Grande Prairie. While acknowledging the city’s efficient permitting processes, Windrim emphasized the need for further action to address the housing demand. He stressed the importance of political will and foresight in moving the city forward in meeting housing needs.
The executive director noted a shift in market demands post-COVID-19, with increased demand for smaller single-family homes such as townhouses and row houses. Windrim commended surrounding communities like Blackfalds and Sylvan Lake for being more responsive to this demand due to their flexible bylaws and planning.
Gregg Broks, regional manager for Melcor Developments in central Alberta, identified challenges faced by Red Deer in collaborating with builders to boost housing starts while balancing development with residents’ concerns. He cited opposition from neighborhoods like Clearview Ridge against higher-density housing proposals.
David Girardin, senior manager of growth and development for the City of Red Deer, highlighted the city’s positive trajectory in housing starts this year, signaling a turnaround from previous slow growth patterns. He emphasized ongoing efforts to streamline zoning bylaws for diverse housing construction and enhance efficiency in city policies to address the housing shortage.
Derek Fredeen, partner with Alair Homes Red Deer and Alair Bow Valley, echoed the need for improved collaboration between the city and builders to expedite development processes. Girardin also mentioned the city’s focus on promoting development in Capstone, a mixed-use community, with ongoing residential building projects like The Alex aimed at increasing housing supply.
Broks pointed out that Red Deer’s recent lack of major projects could explain the lower housing starts compared to similar cities. However, he anticipates a potential shift with the upcoming $1.8 billion hospital expansion, which is expected to attract more residents and create a demand for new housing in the city.
