Duplex demand driving multi-family development
Josh Skapin looks at ups and downs in region’s new construction last month.
While new construction of apartments and townhomes in the Calgary area cooled in September, it was another month of growth for the duplex segment.
Total multi-family development in the Calgary census metropolitan area slipped to 449 starts last month from 814 a year earlier, says Canada Mortgage and Housing Corp.
The census metropolitan area includes activity from nearby cities and towns, such as Airdrie, Cochrane and Chestermere.
Here’s a look at six things about apartment, townhome, and duplex construction in the Calgary area last month.
DUPLEX DEMAND CONTINUES
Duplex starts have outpaced the same time in 2016 for four months running. With 144 of these homes taking root in September, this topped activity from the same month a year ago by 29 per cent. Through nine months in 2017, there were 1,016 duplex starts, soaring past 644 from a year ago. Northwest leads the city with 248 duplex starts year to date.
APARTMENT ACTIVITY DIPS
Shovels turned in only two ends of the city for apartment-style condos in September with 83 in the Fish Creek area and 67 in Calgary’s northwest, says CMHC. The combined 150 was a setback from 524 in September 2016. With 2,849 apartment starts year to date, activity slowed from 2,882 a year earlier. After nine months, southeast Calgary paced the city with 523 starts.
NORTH CALGARY TOPS TOWNHOME GROWTH
Northeast and northwest Calgary continued to lead the way in new construction of townhomes last month. There were 155 total townhome starts in the Calgary area with 56 coming from the city’s northeast and 37 in the northwest. Last month’s total was down from 188 in September 2016. Year to date, shovels turned for 1,230 townhomes, up from 857 a year ago. Leading the year-to-date tally were northwest Calgary and northeast Calgary with 381 and 305, respectively.
APARTMENT INVENTORY RISES
People in the market for a new apartment-style condo that was ready for immediate possession had 395 more units to pick from last month than the same time a year ago. There were 1,057 completed but unabsorbed apartments in the Calgary area, rising from 662 in September 2016. Five ends of the city were in triple-digits last month, led by 264 in northeast Calgary.
TOWNHOME SUPPLY DECREASES
The only multi-family segment to have fewer units available for immediate possession on a year over year comparison last month was townhomes. It had 145 on the books in September, three less than the same month in 2016. Northwest Calgary led the way with 28, followed by 22 in the northeast quadrant. Cochrane’s inventory for new townhomes last month more than doubled September 2016, increasing to 21 from 10, says CMHC.
SOUTHWEST CALGARY PACING DUPLEX INVENTORY
For the second straight month, southwest Calgary has been the city’s leader in constructed and unabsorbed duplexes. It led with 33 in September, following 26 in August. The average value on southwest Calgary’s duplex supply last month was $913,155, the highest in the city.
Total duplex inventory for the Calgary area last month jumped to 166 units from 113 year over year. The Calgary area-wide average was $631,058.