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New numbers from Canada Mortgage and Housing Corp shows that Metro Vancouver builders have returned to building condominiums in a big enough way to push up the region’s overall housing, while the number of single-family homes is declining. New-home construction in June declined from an unexpected frenzy of starts May. However, the 8,472 total housing starts recorded in Metro Vancouver at the end of June represented a 23 per-cent increase from the same period in 2010. Of those starts, 6,813 were multi family homes, which was a 51 per-cent increase compared to the same period in 2010. On the other hand, the 1,659 single-family-home starts for the same period represented a 30 per-cent decline.
This year’s increase in multi-family construction reflects the confidence developers have that the economic recovery is on more solid ground. Immigration, an improving job market and continued low mortgage rates are factors that drive new-home construction. The biggest increase in multi-family construction have come in Richmond and Surrey with some of the activity pushed along by same influence of immigrants and offshore purchasing that is affecting the overall real estate market.
Nationwide, home construction rose more than expected. The housing starts in June are due to single and multiple starts in Ontario. However, its is expected to move back toward levels consistent with demographic fundamentals in the near term.
To see the full article, please click on the link below:
The Vancouver Sun, July 12th, 2011
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