Housing Starts to Decline in New Brunswick

MONCTON, NEW BRUNSWICK--(Marketwired - Oct. 31, 2013) - According to Canada Mortgage and Housing Corporation's (CMHC's) Fall Housing Market Outlook - Saint John, Moncton and Fredericton report, residential construction in New Brunswick's large urban centres is expected to decline in both 2013 and 2014.

"Rising vacancy rates in the province's large urban centres will slow multi-residential construction activity and single-detached starts will continue to trend lower over the forecast period, resulting in an overall decline in total housing starts in 2013 and 2014," said Claude Gautreau, CMHC's senior market analyst for New Brunswick. "The increase in the supply of new homes has outpaced demand in recent years due to above average construction activity, particularly in the rental market. In addition, slow economic growth and weakening employment have reduced demand for new homes, which will directly impact residential construction activity."

The general trend in the resale market is expected to be similar in 2013 and 2014, with fewer homes expected to be sold over the forecast period. "The ample supply of existing homes reflected by high levels of new listings, combined with slowing sales activity will also limit price growth over the forecast period," added Gautreau.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of 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.

Follow CMHC on Twitter @CMHC_ca

Additional data is available upon request.

(Ce document existe également en français)