Multi-family unit starts improve in Q2
New construction of all multi-family development in the Calgary area dipped over the first half of 2015 compared to same time last year, says a federal agency.
Shovels turned for 4,467 multifamily homes in the Calgary census metropolitan area between Jan. 1 and the end of June. This marks a 25 per cent pullback from the 5,971 that broke ground over the first half of 2014. The census metropolitan area includes work in neighbouring cities and towns, such as Airdrie, Cochrane and Chestermere.
Multi- construction starts in the Calgary area were the second highest of all urban centres in the province, trailing 6,321 in the Edmonton area. For the Edmonton area, this was an increase over its 3,353 starts a year earlier.
Despite the downswing, all three multi-family segments improved between the first and second quarters of 2015 in the Calgary area. The largest increase came from apartment-style condos, which saw 1,599 starts between April 1 and the end of June after 1,280 broke ground from Jan. 1 through the end of March.
At the same time, townhome construction starts climbed to 562 in the second quarter from 462 in the first quarter and duplexes jumped to 318 from 246.
“I think part of it is seasonal,” says Richard Cho, CMHC’s principal of market analysis. “Weather can have an impact on construction and so as we move away from the winter months into spring and summer, that does have an impact on construction. The numbers compared to 2014 are still down. That’s partly due to what’s happening in the economy.”
Over the first half of 2015, the busiest area for new construction of duplexes was southwest Calgary with 112 and the city’s northwest topped all areas in town houses with 266. For apartments, the southeast quadrant paced the city with 471.
The city’s downtown and Eau Claire area logged the largest number of apartments under construction over the first half of 2015 with 2,392. Outside city limits, Cochrane was the leader in new construction for both duplexes and town houses. There were 90 construction starts on duplexes, up 36 per cent from 66 a year ago. Townhome starts in Cochrane jumped 134 per cent to 211 from 90 during the same months in 2014.
“Cochrane is close enough to Calgary where many commute on a regular basis,” Cho says. “The population in Cochrane has been growing over the last number of years and so with that we are seeing a demand for housing extend beyond single-detached units and with that we are seeing more multifamily units break ground.”