Calgary has the highest year over year spike in new housing prices in Canada, at 7. 5 per cent and one economist says it’s a matter of supply and demand, reports

Jack Mintz, the director of the University of Calgary's School of Public Policy, says the city’s effort to curb urban sprawl is helping drive new home prices up.

Mintz says the city needs to think carefully about limiting new housing development if it wants to make housing more affordable.

Economist Todd Hirsch, however, points to last year's flood as a big factor.

"I think that's part of the reason building costs and material costs and labour costs are a little bit elevated in Calgary. So I think Calgary’s flood last year still having some residual carry over effect to these new home prices even today."

Hirsch says once the flood rebuilding is complete, building costs will come down — and we will likely see more moderate growth in new home prices.

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