Apart­ment con­struc­tion slows

Town­homes, du­plexes rise in July: CMHC

Calgary Herald New Condos - - New Condos - JOSH SKAPIN

New con­struc­tion of mul­ti­fam­ily hous­ing in the Cal­gary area eased last month com­pared to the same time in 2013, says a fed­eral agency.

In the Cal­gary cen­sus metropoli­tan area, shov­els turned out 686 multi-fam­ily units.

That’s an 18.5 per cent down­swing from the 813 starts in July 2013.

It was also a move back from the 1,780 starts a month ear­lier in June.

The cen­sus metropoli­tan area in­cludes ac­tiv­ity in sur­round­ing cities and towns, such as Air­drie, Ch­ester­mere and Cochrane.

“The de­cline in multi-fam­ily starts that we saw in July was mainly due to the apart­ment seg­ment,” says Richard Cho, se­nior mar­ket an­a­lyst with Canada Mort­gage and Hous­ing Corp. There were 384 con­struc­tion starts on apart­ments last month, down from the 575 that broke ground a year ear­lier.

While there was less apart­ment con­struc­tion last month, the other multi-fam­ily sec­tors grew. There were 118 con­struc­tion starts on du­plexes in the Cal- gary area in July. This marked a 60 per cent uptick from the 74 starts a year ago. Town­homes saw 12 per cent growth with 184 starts last month, up from 164 dur­ing the same time in 2013.

“Semis (du­plexes) and rows (town­homes) tend to be priced lower in com­par­i­son to a sin­gle-de­tached home and that would likely ap­peal to some in­di­vid­u­als who per­haps want to pay a bit less but also want some­thing larger com­pared to an apart­ment unit,” says Cho.

Be­tween Jan. 1 and the end of July, the Cal­gary area saw new con­struc­tion on 6,657 multi-fam­ily units. This is the high­est of any ur­ban cen­tre in Al­berta. It’s also dou­ble the starts from the same span in 2013, when there were 3,290 starts. In the first seven months of the year, the Ed­mon­ton area reached 3,793 starts. This is a 50 per cent dif­fer­ence from the area’s 5,706 starts a year ear­lier.

Cal­gary Her­ald/Files

A con­struc­tion crew works on a multi-fam­ily project in the in­ner-city in Cal­gary. July starts of multi-fam­ily homes in the Cal­gary area were down, the CMHC says.

Richard Cho

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