Why is real estate booming when other parts of Alberta’s economy are struggling?

Looking at the recent residential real estate sales numbers, you would say housing is booming in our region.



a sign on the side of a building: In December, residential sales in the Edmonton region grew by 35 per cent year over year.


© Provided by Edmonton Journal
In December, residential sales in the Edmonton region grew by 35 per cent year over year.

In December, our number of residential sales in the Edmonton region grew by 35 per cent year over year. In January, as of this writing, we are up 22 per cent in number of sales over last year. We are seeing multiple offers being common place in certain property segments.

We might question what is fuelling this increased demand for real estate in Alberta. Typically, immigration has been the main driver for housing growth in Alberta. With international immigration all but shut down, what are the driving factors behind this increase in demand?

I am going to venture a guess that there are four main reasons for it.

I suspect there is a significant amount of housing speculation. You could say that Alberta has not seen growth in real estate values since 2007. We have fallen behind much of Canada in average home values. Speculators may feel that there is more opportunity for growth in holdings in Alberta than other regions.

Read More

Pandemic dims growth picture for interior design sector – Economy, Law & Politics

Two years of employment gains in Metro Vancouver’s interior design industry have been wiped out undercut by the COVID-19 pandemic.

In 2021, average employment fell below 2018 levels and by 12.7{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} to 16.15 employees from 18.5 in 2020, according to data collected for Business in Vancouver’s Biggest Interior Design Firms in Metro Vancouver list (biv.com/lists).

The median employment of the companies on the list sank an even greater 18.8{ac967ad544075fb2f6bcea1234f8d91da186cac15e616dc329e302b7c7326b8c} to 13 employees in 2021 from 16 in 2020. This suggests that smaller companies lower on the list suffered greater employment declines than larger companies, higher on the list.

Over the past five years, the growth in median employment for the companies listed has lagged behind average growth. This suggests that smaller companies lower on the list had weaker employment growth before the pandemic to buffer against an even greater post-pandemic decline.

Three of the top five largest interior design firms experienced no employment loss in 2021: No. 1 SmartDesign Group, No. 2 Kasian and No. 4 CHIL Interior Design.

There was no employment change in 2021 compared with 2020 for 11 companies on the list.

 

 

Only two companies posted employment growth in 2021.

No. 6 Bob’s Your Uncle Design Ltd.

Read More