Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

July 11, 2005 08:15 ET

Canada Mortgage and Housing Corporation: Record Construction Activity Results in Fewer Housing Starts

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 11, 2005) - Canada Mortgage and Housing Corporation (CMHC) figures indicate that housing starts in the Vancouver CMA dipped 24 per cent to 1,317 units in June over the same period last year. Multiple housing starts fell 30 per cent to 841 units, while single-detached starts declined 11 per cent to 476 units compared to the same month last year.

"Fewer housing starts are not surprising," said Cameron Muir, Senior Market Analyst. "Homebuilders are extremely busy working on the record number of projects already under construction." During the first half 2005 an average of 18,565 housing units were under construction in the Vancouver CMA, the highest number of ever recorded during the first two quarters of the year.

"Homebuilders have hit the ceiling," added Muir. "While consumer demand remains very strong, homebuilders are finding it increasingly difficult to build more homes than they are right now."

Year-to-date, housing starts in the Vancouver CMA are down 12 per cent to 8,574 units over the first six months of 2004. Single-detached starts declined 21 per cent to 2,278 units, while multiple starts dipped 9 per cent to 6,296 units compared to the same period last year.

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 attached graphs, please click on the following link:
http://www2.ccnmatthews.com/database/fax/2000/cmhc711.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
    Cell: (250) 360-7322
    pprill@cmhc-schl.gc.ca
    or
    Canada Mortgage and Housing Corporation
    Paul Fabri
    Market Analyst - BC Southern Interior
    (250) 712-4334
    pfabri@cmhc-schl.gc.ca
    www.cmhc.ca