As the economy improves, business investment in non-residential structures is expected to climb by 5.3% in 2017 and 11.7% in 2018. The approval of major pipelines will lead to billions in capital spending. One possible delay for the Kinder Morgan Trans Mountain pipeline might be British Columbia’s NDP/Green coalition government, which was came to power in 2017.
The market for non-residential structures may also grow as a result of e-commerce. As Albertans do more of their shopping online, companies will need warehouses nearby for fast delivery of goods. Industry experts predict that the Edmonton-Calgary corridor will be an ideal site for the construction of large storage buildings.
The provincial government will spend another $2.45 billion on its infrastructure program in 2017. This five-year, $34.8 billion program was announced after the collapse of crude oil prices. It includes cost-sharing agreements with the federal government of almost $350 million under the Public Transit Infrastructure Fund.
Housing starts are expected to climb by 0.9% in 2017. But as more jobs — and homebuyers — become available in 2018, housing starts will climb by 8.3%. Annual new housing levels will reach 32,600 units by 2040. However, much of that will be multi-family units as seniors downsize and younger, smaller families choose more affordable housing.