Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

October 26, 2015 08:15 ET

Greater Housing Demand in London In 2016

TORONTO, ONTARIO--(Marketwired - Oct. 26, 2015) - Canada Mortgage and Housing Corporation (CMHC) released its Fall Housing Market Outlook report for London CMA today. Housing starts in London will increase seven per cent to 2,300 starts in 2016 and will grow again in 2017. MLS® sales will increase three and a half per cent to 9,500 sales in 2016 and be higher in 2017. The average vacancy rate will decrease to 2.5 per cent in 2016 and be stable in 2017.

"Greater household formation will lead to greater housing demand in London in 2016. Improved labour market conditions will cause a larger percentage of London's growing number of 25 to 34 year olds to leave the parental home to form their own households, " said Anthony Passarelli, CMHC Market Analyst for London CMA. "Less choice in the resale market will lead to greater growth in the average MLS® price and higher housing starts next year. Higher carrying costs, due to rising prices and mortgage rates that will start to edge up in late 2016, will have little effect on homeownership demand in London. The income required to qualify for a mortgage on the average resale home will still be lower than the income of the average household in London."

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

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.

Follow CMHC on Twitter @CMHC_ca

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