Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

January 11, 2005 08:15 ET

Canada Mortgage and Housing Corporation: 2004 Housing Starts Highest in Ten Years


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CANADA MORTGAGE AND HOUSING CORPORATION

JANUARY 11, 2005 - 08:15 ET

Canada Mortgage and Housing Corporation: 2004 Housing
Starts Highest in Ten Years

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 11, 2005) - Canada
Mortgage and Housing Corporation (CMHC) figures indicate that housing
starts in the Vancouver CMA climbed 24 per cent to 19,435 units in 2004
over 2003. In fact, there were more housing starts last year than in any
year since 1994 when housing starts totaled 20,473 units. Multiple
starts jumped 35 per cent to 13,816 units in 2004 and now comprise more
than 70 per cent of all housing starts in the Vancouver CMA. Meanwhile,
single detached housing starts rose 4.4 per cent to 5,619 units in 2004.

CMHC forecasts housing starts in the Vancouver CMA to increase a further
3 per cent in 2005 to 20,000 units. "Demand for new housing will remain
robust for three reasons," said Cameron Muir, senior market analyst.
"Increasing employment growth, particularly in full-time jobs, is
bolstering consumer confidence. Vancouver's strong economy is attracting
migrants from across the country and around the world, providing demand
for both rental and ownership housing. In anticipation of rising
mortgage rates, many households will choose to buy now rather than wait."

While low new home inventories are a strong signal that Vancouver's
construction boom will continue, rising construction costs and
competition for labour from 2010 Olympic and transportation related
projects will lead to higher new home prices and longer completion times.

Across the province, urban housing starts increased 25 per cent to
30,884 units in 2004, the highest number of annual urban housing starts
since 1994 when 34,619 units were started. Multiple starts climbed 36
per cent to 18,546 units, while single detached starts rose 12 per cent
to 12,338 units in 2004.

CMHC is Canada's national housing agency. The BC & Yukon Regional
Business Centre produces a variety of reports which highlight trends in
the new and resale housing markets.

To view the map and tables accompanying this press release please click
on the following link:
http://www2.ccnmatthews.com/database/fax/2000/CMHC0111.pdf.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Canada Mortgage and Housing Corporation
    Cameron Muir
    Senior Market Analyst
    (604) 737-4144 or Cell: (604) 319-3179
    Email: cmuir@cmhc-schl.gc.ca
    or
    Canada Mortgage and Housing Corporation
    Peggy Prill
    Market Analyst - Victoria / Vancouver Island Contact
    Cell: (250) 360-7322
    Email: pprill@cmhc-schl.gc.ca
    or
    Canada Mortgage and Housing Corporation
    Paul Fabri
    Market Analyst - BC Southern Interior Contact
    (250) 712-4334
    Email: pfabri@cmhc-schl.gc.ca
    Website: www.cmhc.ca