Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

September 09, 2005 08:15 ET

Canada Mortgage and Housing Corporation: Housing Starts Decline in August

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 9, 2005) - Canada Mortgage and Housing Corporation (CMHC) figures indicate that housing starts in the Vancouver CMA dipped 25 per cent to 1,723 units in August over the same period last year. Multiple starts declined 28 per cent to 1,280 units, while single detached housing starts decreased 15 per cent to 443 units compared to the same month last year. Fewer August housing starts were expected after August 2004's near record of 2,288 starts in the Vancouver CMA.

"Despite strong housing demand, builders and developers are facing considerable constraints to increasing production," said Cameron Muir, Senior Market Analyst. "A limited supply of developable land, bottlenecks in the approval process in some jurisdictions, an impending shortage of skilled trades workers, and increasingly complex developments are extending the time between conception and completion of many projects."

"The good news," said Muir, "is that these constraints reduce the likelihood of builders and developers building in excess of demand. However, the not so good news is that these forces will continue to put upward pressure on new home prices."

Year-to-date, housing starts in the Vancouver CMA were down 12 per cent to 11,942 units compared to the same period last year. So far this year single-detached starts have fallen 19 per cent to 3,179 units, while multiple starts were off 9 per cent from last year's pace of 8,763 units.

Across the province, urban housing starts fell 16 per cent to 2,728 units in August. Multiple starts dipped 25 per cent to 1,657 units over August of 2004. Meanwhile, single-detached housing starts rose 1 per cent to 1,071 units over the same period. Year-to-date, urban BC housing starts declined 4 per cent to 20,829 units.

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

To view the tables accompanying this press release please click on the following link: http://www2.ccnmatthews.com/database/fax/2000/0909CMHC.pdf

Contact Information

  • Canada Mortgage and Housing Corporation
    Cameron Muir
    Senior Market Analyst
    (604) 737-4144 or Cell: (778) 839-8590
    cmuir@cmhc.ca
    or
    Canada Mortgage and Housing Corporation
    Peggy Prill
    Market Analyst - Victoria / Vancouver Island Contact
    (250) 360-7322
    pprill@cmhc-schl.gc.ca
    or
    Canada Mortgage and Housing Corporation
    Paul Fabri
    Market Analyst - BC Southern Interior Contact
    (250) 712-4334
    pfabri@cmhc-schl.gc.ca
    www.cmhc.ca