The cost of new housing rose substantially in August, largely as a result of significant gains in Alberta.

Statistics Canada said the new housing price index was up 1.5% in August to 145.7, eclipsing the 1.1% increase registered in July. Compared to one year ago, contractors’ selling prices increased 12.1%.

Prices advanced in 16 of the 21 metropolitan areas surveyed. Edmonton posted the largest monthly increase (+6.8%), followed by Calgary (+3.5%), Vancouver (+2.5%) and London (+1.7%).

In Edmonton and Calgary, increased costs for construction materials, steeper trade labour rates and higher land costs combined with strong demand to push up the prices of new homes.

Vancouver and London experienced strong markets for new housing as well.

Calgary (+60.6%) once again posted the largest 12 month increase for new homes. Edmonton was next (+37.8%) followed by Regina (+9.5%), Saskatoon (+9.5%) and Winnipeg (+9.3%).