Ottawa Townhome Starts Lead in April

OTTAWA, ONTARIO--(Marketwire - May 9, 2011) - According to the latest preliminary data released by Canada Mortgage and Housing Corporation (CMHC), total housing starts in the Ottawa Census Metropolitan Area (CMA) declined by almost 12 per cent when compared to April 2010. Nevertheless, year-to-date total starts remain stable in relation with the same period a year earlier.

Consistent with the trend seen in the first quarter, single-detached family homes construction continues to slow, falling behind by 21 per cent when compared with the same month in 2010. Almost half of the total construction in April was accounted by the townhouse segment, increasing by more than thirty per cent when compared to April 2010.

"High percentage of townhomes resulted in driving up year-to-date multiple-family dwellings to two thirds of all residential construction in the Ottawa CMA," said Sandra Pérez Torres, Senior Market Analyst at CMHC. "This trend has been expected given the growing influence of first-time home buyers and downsizing empty-nesters," concluded Pérez Torres.

To view Graph 1 associated with this press release, please visit: http://media3.marketwire.com/docs/ottawa_graph1-en.pdf.

Most of the new foundations were poured in the areas outside the Greenbelt, such as Nepean, Cumberland and Gloucester. These areas combined to almost 70 per cent of total construction in Ottawa. Nevertheless, the heaviest drag on April's total starts came from Nepean, falling behind last April's results by over 100 units. Experiencing also a significant decrease were the areas of Kanata and Goulbourn. Most of the other smaller suburban areas post comparable or higher levels of construction than last April.

To view Graph 2 associated with this press release, please visit: http://media3.marketwire.com/docs/ottawa_graph2-en.pdf.

Total housing construction, on a year-to-date basis, almost matched last year's pace with 1542 new units. The strong apartment construction in the City Core and Vanier has been offset by the continuing weakness in single-detached houses across most Ottawa areas, indicating a clear preference for higher-density, more affordable types of housing. While the East side gains in Gloucester were offset by losses in Cumberland, on the West side Nepean, Kanata, Goulbourn and West Carleton remain below last year's pace.

To view Graph 3 associated with this press release, please visit: http://media3.marketwire.com/docs/ottawa_graph3-en.pdf.

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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