Construction pace drops in Edmonton
Decrease less than that within Calgary’s market
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.
In Calgary construction began on only 98 units in May, compared to 1.013 in May 2008.