Construction pace declines
Builders focusing on existing developments
Sales continue to occur in Calgary’s multi-family sector as builders and developers continue to push toward completion of existing projects.
While this is happening, construction starts have dwindled dramatically from a year ago — and the decline is much more noticeable in Calgary than in Edmonton, says Canada Mortgage and Housing Corp.
In Calgary, work started on 254 apartments, townhouses and semi-detached homes in July, a decline of 43 per cent from the same month a year ago.
“With inventories rising over the past 12 months and further increases expected, it is likely multi-family production will remain weak through the balance of the year,” says Lindsay Kendall, Calgary-based market analyst for CMHC.
From January to July, 686 units were started — a decrease of 88 per cent from the 5,935 starts recorded for the same period last year.
In the provincial capital region, CMHC says work started on 178 multi-family units of all types in July, just 14 per cent off the yearago total of 208.
So far this year, started have totalled 973 units — representing a 67 per cent fall from the 2,994 units for the first seven months of 2008.
Strong gains for both semidetached and townhouses were countered by zero apartment starts in July, says Richard Goatcher, senior market analyst in CMHC’s Edmonton office.
“Apartment starts are expected to remain weak this year as the industry deals with an elevated supply of condominium starts,” he says.
A crane on a construction site for a condo development in 2008.