A new report shows Alberta had a record year for new home construction, although it was not the same picture in Lethbridge. (Image Credit: (c) Dpproductions | Dreamstime.com)

By David Opinko

Alberta sets record for new home construction, despite decline in Lethbridge area

Jan 21, 2026 | 2:52 PM

2025 was a record year for housing starts in Alberta, just not in Lethbridge.

Citing data from BILD Alberta and the Canada Mortgage and Housing Corporation (CMHC), officials in the Alberta Government say their plans to attract investments and residents are working.

“Once again, Alberta is punching above our weight,” says Jason Nixon, Minister of Assisted Living and Social Services. “Our province is shattering housing records and building at unprecedented rates, keeping pace as more people than ever before call our great province home.”

Construction began on more than 53,000 homes in Alberta in 2025 – the first time that this number has been over 50,000 in a single year. This marks an increase of 14 per cent compared to 2024.

Several communities throughout the province experienced upticks in housing starts this past year, including:

Nighttime construction on Hwy 3 in Lethbridge starts April 17

Apr 17, 2025

SASHA launches #BuyABed fundraiser to support vulnerable Lethbridge residents

Apr 04, 2025

$20K grants available: TELUS STORYHIVE Pan-Asian Edition opens applications April 1

Mar 18, 2025

• Edmonton: 21,337 compared with 18,834 (up 16 per cent)
• Calgary: 27,684 compared with 24,396 (up 14 per cent)
• Red Deer: 405 compared with 354 (up 14 per cent)
• Grande Prairie: 366 compared to 194 (up 89 per cent)
• Medicine Hat: 317 compared to 193 (up 64 per cent)

The Lethbridge Census Metropolitan Area (CMA) was one of the only communities to see new housing construction fall in 2025 compared to 2024.

The CMA includes the City of Lethbridge, as well as communities like Coaldale, Coalhurst, Picture Butte, Nobleford, and much of Lethbridge County.

In 2025, there were 620 housing starts in the Lethbridge CMA, dropping by 13.3 per cent compared to the year prior.

That puts the community in line with its 10-year average.

Housing inventory in the Lethbridge CMA declined slightly to around 300 available units. The 10-year average is about 500, as the CMA has experienced a sharp decline in the availability of housing in the 2020s.

The cost of housing has risen in nearly all communities in Alberta over the last year, averaging around $730,000 provincially in 2025.

The CMHC says home prices have risen to a little more than $600,000 on average in Lethbridge, by far exceeding the decade’s norm of approximately $480,000.

READ MORE: Lethbridge home sale prices up 20% in one year

READ MORE: Lethbridge rent prices rise slightly in December