Strength in Alberta’s home construction market provided enough optimism for Star Building Materials to expand its production in the province this year, doubling its capacity to manufacture key home construction products. 

In May, Star Building Materials, a subsidiary of Qualico, opened a 153,000-square-foot expansion at its existing distribution centre near Balzac on the northeast edge of Calgary.

The complex represents an investment of over $50 million, and includes a new head office and three open-span production facilities. Nearly 300 staff work at the 31-acre site that produces trusses, engineered wood floors, prefabricated wall panels and interior finishes. 

“This expansion significantly enhanced our production capacity, allowing us to meet the needs of our customers, accommodate more materials, and boost operational efficiency,” Nina Wulder, marketing and communications manager with Star Building Materials, told RENX Homes.

“We have more than doubled our capacity, positioning us to support the growing construction needs in the region. Furthermore, we are positioned to support even more supply needs as the market continues to grow.”

Earlier this year, the company also expanded and rebranded its Edmonton operations as a Star Buildings Materials location.

Calgary, Edmonton leading new home construction

The Alberta home construction market is indeed performing well, according to the Canada Mortgage and Housing Corporation (CMHC). Combined housing starts in Canada’s major markets in the first half of this year were near historic highs, led by gains in Calgary, Edmonton, Montreal and Ottawa, according to the CMHC’s Autumn Housing Supply Report. Those gains were offset somewhat by retreats in Toronto, Vancouver and Halifax.

On average, the number of homes that began construction across all Canadian census metropolitan area markets was only slightly higher from January to June of 2025 than in the same period in 2024, according to the report.

In Calgary, most of the new housing starts were driven by rental buildings.

"Despite recent increases in vacancy rates, rental housing construction remains high thanks to strong population growth in Alberta and favourable zoning and financing programs," the CMHC said in the report. Overall housing starts in Calgary are expected to be strong this year and then remain elevated in 2026.

In Edmonton, housing starts increased significantly in the first half of 2025, driven by gains in both the multifamily and single-family segments, the report said. The relative affordability of housing in the Alberta capital kept developers optimistic, despite business and economic uncertainty that reduced housing starts elsewhere in the country.

Star Building Materials shares that view.

“We are optimistic about the future of homebuilding in Alberta,” Wulder said. “This optimism is fuelled by Canada’s growing population, urbanization trends and the significant need for housing in key markets like Calgary.”

The demand for sustainable homes also presents opportunities for growth and innovation.

“By expanding our facilities in Edmonton and Calgary, we aim to meet the anticipated demand, respond to evolving housing needs, and continue delivering high-quality building materials to our customers,” she added

Calgary site embraces tech to increase efficiency

“There isn’t really anything else like this in North America,” the company said of its new Calgary operations in an article on its website introducing the expansion. The facility is uniquely designed with a consolidated layout and streamlined workflow, enhanced by the latest technology upgrades.

It said every production element, from prefabricated wall panels to trusses and floor systems, flows through a set of computerized equipment that automates cutting and manufacturing.

Computer-guided measurement systems and software-directed cutting improve efficiency and reduce waste. Ink jet labelling at the plant provide construction crews clear instructions, removing guess work at construction sites, it said. 

The improved efficiency at the plant and the consolidation of the company's operations are also expected to reduce energy use. 

Company attuned to broader economic challenges

Star Building is a subsidiary to Qualico, a fully-integrated real estate company operating 40 subsidiary companies related to construction and real estate, across eight locations in Western Canada and the U.S.

Wulder said the Star team is attuned to challenges in the broader economy. 

“The building materials industry often navigates challenges in relation to supply chain disruptions, fluctuating costs and the need to meet demand for sustainable products," she said.  "Workforce availability remains a key consideration, especially in specialized manufacturing roles.

“Economic factors such as interest rates can also impact demand in the home construction sector, presenting headwinds. We proactively manage these factors by fostering strong supplier relationships, investing in innovations and maintaining flexibility to adapt to market conditions.”