Constructi­on pace drops in Ed­mon­ton

De­crease less than that within Cal­gary’s mar­ket

Calgary Herald - Calgary Herald New Condos - - New Condos - MARTY HOPE

Aplunge in constructi­on starts for multi-fam­ily hous­ing in Ed­mon­ton wasn’t as deep as it was in Cal­gary, says a fed­eral agency.

In its May ac­tiv­ity re­port, Canada Mort­gage and Hous­ing Corp. says work started on 104 semide­tached homes, town­houses and apart­ments.

It marked a 67-per-cent de­cline from the 311 starts recorded for the same month a year ago.

In Cal­gary, only 98 units were started, com­pared with 1,013 in May of last year.

For the first five months of this year, CMHC re­ports 613 multi-fam­ily starts in and around Ed­mon­ton — a de­cline of 75 per cent from the 2,474 starts for the same pe­riod in 2008.

“CMHC’s cur­rent fore­cast for the (Ed­mon­ton) re­gion calls for 1,250 multi-fam­ily starts in 2009, com­pared to 4,002 in 2008, and re­flects de­vel­oper con­cerns over un­sold con­do­minium in­ven­to­ries and ris­ing rental apart­ment va­can­cies,” says Richard Goatcher, se­nior mar­ket an­a­lyst for CMHC in Ed­mon­ton.

In terms of sin­gle-de­tached houses, the de­cline was much less se­vere.

Builders started work on 242 homes in Ed­mon­ton in May, down 12 per cent from 275 started dur­ing the same month last year.

For the first five months, 849 base­ment foun­da­tions were poured in Ed­mon­ton, a de­cline of more than 23 per cent from the 1,110 of a year ago.

“Ac­tiv­ity lev­els so far this year are in line with CMHC’s fore­cast for de­tached starts,” says Goatcher. In terms of starts of all kinds, the 346 recorded last month was down from the 586 for May 2008. For Jan­uary to May, the num­bers are 1,462 this year and 3,584 in 2008.

Richard Goatcher

Cal­gary Her­ald Archive

In Cal­gary constructi­on be­gan on only 98 units in May, com­pared to 1.013 in May 2008.

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