FOR IMMEDIATE RELEASE
Multi-unit Construction holds back Vancouver Housing Starts in October
Vancouver, November 8, 2006 Canada Mortgage and Housing Corporation (CMHC) figures indicate that 1,256 homes were started in the Vancouver CMA in October, a 37 per cent decline from the October 2005 level. Multi-family housing starts declined 50 per cent to 783 units in October compared to the same month last year, while single detached housing starts in the Vancouver CMA increased 8 per cent.
The impact of month-to-month fluctuations in multiple-unit starts on total housing starts, as seen in October, is not unusual given the large number of units in these projects, noted Andy Ni, Market Analyst. The record level of units under construction, the ongoing skilled labour shortage, and the scarcity of developable land have prevented builders and developers from taking full advantage of the robust housing demand underpinned by the strong Vancouver economy, added Ni. Multi-unit residential projects are particularly vulnerable to the current supply-side constraints.
Year-to-date, the total number of housing starts in the Vancouver CMA were virtually unchanged from the same period last year. Single-detached housing starts increased 20 per cent to 4,983 units, while multi-unit starts dipped seven per cent to 11,010 units compared to the first ten months of 2005.
Canada Mortgage and Housing Corporation (CMHC) has been Canadas national housing agency for over 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, and making vibrant and sustainable communities and cities a reality across the country. For more information, visit www.cmhc.ca or call 1 800 668-2642.
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