Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

October 26, 2015 08:15 ET

Guelph Housing Starts to Decline Sharply in 2016 and Modestly in 2017

TORONTO, ONTARIO--(Marketwired - Oct. 26, 2015) - Housing starts in the Guelph Census Metropolitan Area (CMA) are expected to decline to 965 units in 2016 and 915 units in 2017, according to the Canada Mortgage and Housing Corporation's (CMHC) Fall Housing Market Outlook released today. In addition, apartment starts will decline further from near record levels in 2014, while single-detached starts will also trend lower in 2016 and 2017.

Existing home sales are projected to increase in 2016 and remain relatively unchanged in 2017. The resale market is anticipated to continue to favour sellers in Guelph, with price growth close to three per cent. The apartment vacancy rate is forecast to increase slightly in both 2015 and 2016, primarily due to an increase in the supply of rental housing.

"Strong employment growth has supported housing demand in 2015, pushing both new home construction and existing home sales to very strong levels. Slower employment growth and fewer lots registered in 2015 will result in lower starts in 2016," said Erica McLerie, CMHC Senior Market Analyst. "Housing starts will be trending down closer to the long-term rate of household formation next year. With prices higher and mortgage rates starting to edge up in late 2016, demand will stabilize in 2017."

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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