August Housing Starts Increased in the London CMA

TORONTO, ONTARIO--(Marketwire - Sept. 11, 2012) - New residential construction in the London CMA increased last month compared to August 2011 according to preliminary data released today by Canada Mortgage and Housing Corporation (CMHC). Housing starts totalled 400 in August 2012 compared to 118 a year earlier.

"The majority of the strength in September came from apartment starts, which were substantially higher than in August 2011," said Alexander Bonnyman, Senior Market Analyst with CMHC. "Following a slow July for apartment starts, work beginning on phase one of a two-stage complex led to the increase."

Overall starts have grown strongly on a year-to-date basis in the London CMA. While apartment starts account for the bulk of the increases, both single-detached and townhome starts are strong. Apartment starts year-to-date have become a larger proportion of total starts although strength in other segments of the market limited this proportional increase. The trend of apartment starts accounting for an increasing proportion of total starts in a year-to-date comparison is also the experience of the Hamilton and Kitchener-Waterloo CMA's. In markets with a growing population such as London, higher levels of apartment starts are to be expected given that the uncertainty remaining in the economic climate leads to affordability considerations.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable housing solutions. 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. CMHC Market Analysis standard reports are also available free for download at CMHC Housing Market Information.

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To view the figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/London_August.pdf.