Kingston Housing Starts Remain Healthy in the Second Quarter

OTTAWA, ONTARIO--(Marketwire - July 11, 2011) - According to preliminary data released today by Canada Mortgage and Housing Corporation (CMHC), total housing starts in the Kingston Census Metropolitan Area (CMA) remained relatively healthy in the second quarter of 2011, despite a sharp decline in single-detached construction activity. During the three months period ending in June, total starts reached 175 units or one unit higher than in the same period in 2010.

The modest increase in total housing starts this second quarter can be attributed entirely to expansion in semi-detached and row construction, which offset the decline in single-detached starts. Meanwhile, apartment starts remained flat.

"In terms of absolute volume, single-detached home segment continues to dominate Kingston's new home market. However, second quarter starts for this type of dwelling remained 13 per cent weaker than the same period in 2010," noted Abdul Kargbo, Market Analyst at CMHC for Kingston.

"Growth in semi and row housing construction activity suggests that some first time home buyers are still taking advantage of currently low mortgage rates and improving local economic conditions. As of May 2011, Kingston full time employment among the age group 25-44 (generally first time homebuyers) increased seven per cent from May 2010," concluded Kargbo.

Between April and June 2011, most new construction took place in Kingston City with 142 units. In fact, Kingston City recorded the only positive growth in new residential construction activity this second quarter while the Frontenac Islands, the Loyalist and South Frontenac Townships all of which registered double-digit decline in starts.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. 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.

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