Apartments Push Up August Starts in Kitchener

TORONTO, ONTARIO--(Marketwire - Sept. 9, 2011) - Canada Mortgage and Housing Corporation (CMHC) released August preliminary housing starts data for the Kitchener-Cambridge-Waterloo Census Metropolitan Area(1) (CMA) today. Construction began on 451 homes, more than double the 190 units started in the same month last year and the highest monthly total in more than six years.

Apartment starts are more volatile month to month and were the story in August. Both condominium and rental apartment starts pushed the overall total higher. The apartments were a mix of high-rise and low-rise buildings. Only 97 detached homes were started in August, down from the 112 units started in August 2010. For the first eight months of 2011, housing starts were lower. All housing types, except apartments, contributed to the decline.

"Global uncertainty has had an impact. Both first-time and repeat buyer demand has declined," said Erica McLerie, Senior Market Analyst at CMHC. "As first-time buyer demand decreased, starts for semi-detached homes and townhomes fell. On the other hand, condominium and rental apartment starts are higher due to increased demand from students, immigrants and baby boomers," added McLerie.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

For more information, visit www.cmhc.ca or call 1 800 668-2642.

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To view the "Kitchener CMA Home Starts" graphic associated with this press release please visit the following link:

http://media3.marketwire.com/docs/cma909.jpg.

To view the "Housing Starts - Kitchener CMA" table associated with this press release please visit the following link:

http://media3.marketwire.com/docs/kit909.jpg.

(1) Statistics Canada defines a census metropolitan area (CMA) as one or more adjacent municipalities integrated with an urban core. A CMA must have a total population of at least 100,000 of which 50,000 or more must live in the urban core.