Calgary apartment-construction starts reached an all-time high in 2023 as developers responded to an ongoing shortage in the rental market, says a new Canada Mortgage and Housing Corporation report.

A total of 9,304 rental-apartment suites were started, compared to 7,750 units in 2022, according to the Housing Supply Report (HSR). Most new Calgary units in 2023 were constructed in the southeast quadrant, particularly the Fish Creek area, and the southwest and northwest quadrants.

Purpose-built rentals accounted for 54% of all apartments started, marking a shift from traditional building trends in Calgary. Historically, condominium units have dominated.

Calgary was among cities that experienced a surge in apartment construction in 2023. The surge helped sustain overall new-housing supply in comparison with the 2022 level.

But the large amount of construction starts will not improve housing affordability, and apartment developers could struggle to match the new-supply level in 2024, Aled ab Iorwerth, the CMHC’s deputy chief economist, has warned.

Apartment construction, including purpose-built rental suites and condominium units, reached record levels in Toronto, Vancouver and Ottawa in 2023.

The CMHC report covers Canada’s six largest cities, including suburbs.