Con­struc­tion slow­down

The Daily Courier - - BUSINESS -

Af­ter a boom in 2017, new home con­struc­tion has cer­tainly slowed in Kelowna this year.

The lat­est fig­ures from Canada Mort­gage and Hous­ing Cor­po­ra­tion show con­struc­tion started on 1,838 homes of all kinds (sin­gle-fam­ily, town­house, con­do­minium and apart­ment) dur­ing the first 10 months of this year.

That’s a 59 per cent plunge from the 2,912 starts over the same pe­riod in 2017.

Last year was a big one for con­struc­tion of rental apart­ment build­ings to meet in­cred­i­ble de­mand.

Much of that de­mand has now been met, so con­struc­tion of apart­ment com­plexes has eased.

The new home con­struc­tion pull back is in keep­ing with what’s hap­pen­ing in the re­sale hous­ing mar­ket.

Sales of homes of all kinds (sin­gle-fam­ily, town­house and condo) have soft­ened.

For both re­sales and new con­struc­tion, tough new mort­gage rules, higher in­ter­est rates, a cor­rec­tion in the Van­cou­ver mar­ket and con­sumers tak­ing a wait-and­see stance have led to the de­cel­er­a­tion.

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