This September multiple family housing starts increased by 150% over last September, raising the overall increase in new construction in the Greater Edmonton area by 40%. For the year overall starts are up by 5.7% while multiple units are up by a third. The majority of September’s new multiples were condominium apartments located in Edmonton, Spruce Grove, Strathcona County and Beaumont.
“Multi-unit builders in the CMA are poised to exceed 6,000 units for the first time since 1982,” noted Richard Goatcher, CMHC’s Senior Market Analyst for Edmonton.
Meanwhile single family home starts were down 24% from last September – the third month in a row they fell below last year’s record pace. Even with the decrease this will be the second best year on record for single family starts.
What does this mean? I had a couple of thoughts and I’m sure our readers will add theirs…
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The increase in multi-family units is at least partially due to rising prices, as multi-family units (condos) are typically more affordable.
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The slowing pace in single family starts will help alleviate the rising resale inventory
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While condos are selling very well right now, if there is a lot of speculation on these new condo units then a condo maybe tougher to sell next spring
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Being the second best year on record new home builders aren’t slowing down all that much, so fears of mass lay-offs in the construction industry are potentially overblown
The full report from CMHC is available here: http://www.cmhc-schl.gc.ca/odpub/press/2007/2007_10_09_0900_EPE.pdf
