New-home construction gets a bump in June
New construction of single-family homes in the Calgary area in June passed the same month in 2016 by more than 100 starts.
Shovels turned for 445 singlefamily homes in the Calgary census metropolitan area, a 31 per cent lift from 339 year over year, says Canada Mortgage and Housing Corp.
The census metropolitan area also factors in activity in neighbouring cities and towns, such as Airdrie, Cochrane, and Chestermere.
June’s total was the busiest month for single-family starts since 461 broke ground in February 2015.
“In terms of overall housing activity, we are seeing an increase, whether it’s in the resale market or the new home market,” says Richard Cho, principal of market analysis for CMHC.
“On the single-detached side of things we have seen a noticeable bump in activity compared to last year,” he adds. “It’s important to keep in mind that the increase we’re seeing this year is pronounced because the numbers that we had posted last year were relatively weak. Despite the gains we have seen this year, they are still down from historical averages.”
But when it comes to the step up in housing demand from a year ago, Cho says there’s been a “gradual improvement in overall economic activity.”
He says job growth, population growth and a downtick in supply through Calgary’s resale market, have all likely played a role.
Halfway through 2017, new construction of single-family homes in the Calgary area is up 39 per cent over the same time period a year ago, with 2,016 starts compared to 1,446.
For June, this was the fifth con- secutive month northwest Calgary led all ends of the city in shovels turned for single-family homes. The quadrant, featuring new communities such as Carrington, Nolan Hill, Sage Hill, Evanston, Symons Gate, Beacon Heights, and the Ridge at Sage Meadows, had 125 starts last month.
Last June, 66 single- family homes took root in Calgary’s northwest.
Halfway through 2017, northwest Calgary leads the way in new single-family construction, as well, eclipsing the next most active quadrant by 100 starts. Between Jan. 1 and the end of June, Calgary’s northwest and northeast quadrants saw 508 and 408 starts, respectively.
In June, the northwest end was followed in starts by 103 in northeast Calgary, 48 in the southeast, 34 in the Fish Creek area, and 30 in the southwest. Seven single-family homes broke ground in the North Hill area of Calgary, as well.
But northwest Calgary led far more than just construction starts last month. It also carried the pace in categories including singlefamily homes under construction with 615, completed single-family homes with 89, and absorbed single-family homes with 96, says CMHC.
And when it came to inventory of new single-family homes, it was northwest Calgary again. There were 130 completed but unabsorbed units, the only quadrant in triple-figures. Northeast Calgary had the second highest total, with 60.
For the Calgary area as a whole, inventory of new single-family homes in June jumped 22 per cent to 439 from 359 a year earlier.