Posted Sep 9, 2014, 3:02 PM
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Join Date: Apr 2008
Location: Lower Mount Royal, Calgary
Posts: 5,147
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Whoa, we're at about a 19,000 housing start annualized pace so far this year, highest ever. Multi-family should easily top 10,000 starts this year. Currently almost a 2-1 ratio vs. sfh starts, looks like this ratio may become the new norm:
Quote:
Calgary region housing starts soar in August
Multi-family market sparks new home construction
BY MARIO TONEGUZZI, CALGARY HERALD SEPTEMBER 9, 2014 7:42 AM
New home construction in the Calgary region is very strong this year.
Photograph by: Ted Jacob , Calgary Herald
CALGARY - A surge in multi-family new home construction helped spike overall housing starts in the Calgary region in August.
Canada Mortgage and Housing Corp. reported Tuesday that total starts in the Calgary census metropolitan area rose by 65.7 per cent during the month from a year ago to 1,627 units. That was mainly due to a whopping 151 per cent hike in the multi-family sector to 1,032 units.
The single-detached market saw a jump of 4.2 per cent to 595 units.
Housing starts were trending at 18,963 in August compared with 18,322 in July, said the CMHC. The trend is a six-month moving average of the monthly seasonally-adjusted annual rates of total housing starts.
“The trend in total housing starts in August rose from the previous month, which was primarily attributed to an increased pace of multi-family construction,” said Felicia Mutheardy, CMHC’s senior market analyst for the Prairie and Territories Region. “Coupled with low inventory, the elevated demand for multi-family units has been supportive of the gains in production.”
Year-to-date, single-detached starts are up 8.5 per cent from last year to 4,586 units while multi-family starts have risen by 107.8 per cent to 7,689 units. Total starts so far this year are up by 54.8 per cent to 12,275 units.
Robert Kavcic, senior economist with BMO Capital Markets, classified Alberta’s new home construction as “very hot” as the industry rebounded from a weak July with 41,100 starts in August compared with 34,600 in July.
He said the three-month average in the province is running at the strongest level since the tail end of the 2006-2007 housing boom.
“Quite simply, they need homes here with population growth topping three per cent year-over-year,” added Kavcic.
The trend measure of housing starts in Canada was 189,837 units in August compared with 189,596 in July, said the CMHC.
“The currently elevated level of inventory of newly completed and unoccupied condominiums, and units under construction, supports CMHC’s view that condominium starts will likely see a declining trend over the coming months as developers and builders seek to limit risks of over-building,” said Bob Dugan, CMHC’s chief economist. “However, there may still be some variability from month to month as the number of presales for some planned condominium projects reaches sufficient levels to trigger project start.”
In August, the seasonally-adjusted annual rate in Canada was 192,368 units, down from 199,813 in July. The SAAR of urban starts decreased to 175,668 in August, from 182,524 in July. Multiple urban starts in August decreased to 110,842 units while the single-detached urban starts segment decreased to 64,826 units.
“Housing starts remain well behaved overall in Canada, but recent permit activity suggests that some upside momentum could be coming in the condo sector in the months ahead,” said Kavcic.
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http://www.calgaryherald.com/business/Ca...nwest%2FF272+(Calgary+Herald+-+Business)
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