In this edition, we’re taking a gander at Lethbridge, Alta., a mid-sized Prairie city that’s seeing big demand and affordability pressures. Plus, we’ll dive into the promises and risks of prefabricated dwellings, and one home worth a look.

Stability is usually what comes to mind when people think of Lethbridge, the southern Alberta city that’s home to 110,000. Its economy is not anchored by energy booms and busts, but by public institutions, a steady agricultural base and a postsecondary sector known for research into agri-food and cleantech, thanks to the U of L and Lethbridge Polytechnic.

It’s got that slow-paced, simple living with low housing costs and taxes, short commutes and easy access to the Rockies and U.S. border that naturally attracts buyers who are seeking affordable housing.

The problem, though, is that the city is feeling the strain of this demand. Housing starts are down. Material costs are up. Tariffs are brewing uncertainty. And the labour market is tight.

I asked writer Chris Wilson-Smith, who wrote about the city this week, if Lethbridge is an outlier or if this is a growing trend. The cost of living in nearby boom cities is “astronomical,” he said, so it makes sense that more people are looking at towns like Lethbridge.

“We’re seeing similar pressure in parts of interior B.C., southern Manitoba, and eastern Ontario – areas where demand has outpaced what they were built to handle," he told me. “The affordability issue is spreading from major markets – and smaller cities, with fewer tools to manage the shift, are starting to feel it more acutely."

In his victory speech last week, Prime Minister Mark Carney promised to “build, baby, build.” He’s pledged $25-billion in loans and $1-billion in equity financing for companies that will largely build prefabricated homes in an effort to solve the country’s housing shortage.

Experts told writer Erica Alini that Carney’s plan is visionary, but it’s not without risk. When you think of prefabricated homes, mobile homes and cottage properties are what typically come to mind, but they can actually be customized to make anything from middle-class apartments and mansions.

But prefabricated homes need to be built at scale with strong homebuyer demand to be commercially viable. And with broad economic uncertainty – the Bank of Canada just warned of rising risks to financial stability – Mr. Carney’s plans to make housing more affordable face a tricky balance.

Regular contributor Hanif Bayat took a look at the different markets first-time homebuyers are facing. Toronto and Vancouver, perennially the priciest cities, topped the list as being the most unaffordable. Bayat digs further into why some markets, despite large populations, remain relatively affordable.

Rates shown are the lowest available for each term/type and category (insured versus uninsured) as of market close on Thursday, May 8.

The election is over and the usually active spring-selling market has only a few weeks left. That’s pushing Toronto homebuyers off the sidelines, reports Carolyn Ireland.

Previously hunkered down by the double whammy of an unpredictable U.S.-Canada trade war and a federal election, sellers are deciding not to procrastinate any longer. One broker said he saw “a slew of listings” hit the market the Tuesday after the federal election.

Still, the buyers are feeling shaky about making a big purchase, with some agents listing homes at attractive prices and barely getting offers. One detached home with three bedrooms was listed at $799,000 and not one bid landed on offer night, a real estate agent said.

The average age of the Ontario first time home buyer is rising. Are you an Alberta resident in your late 30s or 40s who recently purchased your first home? We’re working on a story about home ownership and would love to hear from you, in particular if you are also a recent immigrant or newcomer. Email Globe editor Roma Luciw or journalist Zahra Khozema to share your experience.