‘We’re now in second wave of consumer demand’
Ashley Ford
Province
Urban housing starts in the province continued to power ahead last month. Driven largely by multiple-housing projects, July starts surged ahead by 17.1 per cent to 2,974 from June’s 2,481, Canada Mortgage and Housing Corporation reported yesterday.
In Vancouver starts climbed by 12 per cent to 1,645 units from June’s 1,187 units.
“We are now in the second wave of consumer demand,” said Cameron Muir, senior CMHC analyst in Vancouver. “The first wave was pent-up demand. The current market is supported by much stronger economic fundamentals.”
Across Canada starts only edged up by 0.4 per cent in July to a seasonally adjusted 242,300 units, a high for the year.
CMHC said it is the multiple-housing sector that is driving the surge at the expense of single-family homes.
The changing nature of housing in Canada‘s urban areas, especially cities like Vancouver, can be seen by the numbers.
Multiple starts last month surged an impressive 12.2 per cent nationally, to 122,100 units, while single starts dropped off by nine per cent.
The federal corporation said the jump in multiple starts was expected, as rising housing prices shift demand to less-expensive multi-family homes. But overall housing demand still remains high.
“Low mortgage rates and favourable labour market conditions have boosted new-home construction to its highest level of the year,” said Bob Dugan, chief economist at the corporation’s market analysis centre.
Starts in Quebec surged 15.3 per cent to 45,300 units, four per cent to 7,800 units in the Atlantic region and 2.5 per cent to 36,600 units in the Prairies.
In Ontario, the rate of urban starts fell 7.9 per cent to 89,100 units, despite near-record activity in the Toronto market.
© The Vancouver Province 2005