Thunder Bay Housing Starts Slow

THUNDER BAY, ONTARIO--(Marketwired - Oct. 30, 2014) - According to Canada Mortgage and Housing Corporation's (CMHC) Autumn Housing Market Outlook report for Thunder Bay, single-detached and semis, rows and apartment housing starts will slow this year. Expect only marginal increases in both single and multiples housing starts in 2015 and 2016 as the economy improves.

"Weaker employment levels than one year ago coupled with slowing average weekly earnings growth has affected consumer confidence impacting the residential construction market thus far this year in Thunder Bay," stated Warren Philp, CMHC Market Analyst. "Improved employment conditions should boost housing starts, but only slightly, in 2015 and 2016," added Philp.

Listings growth especially in the higher priced ranges is being witnessed in the resale market, but for now, sellers' conditions prevail. Anticipate a 6.5 per cent price growth in 2014 and a further 4.9 and 3.0 per cent in 2015 and 2016.

Rental demand meanwhile has remained strong supported by in-migration from elsewhere in Northwestern Ontario and the presence of increasing numbers of international students. Despite added rental supply in the form of condominium apartments, vacancy rates should fall throughout the forecast period. Expect two-bedroom average rents to rise above by 2.0 per cent in 2014 and another 2.3 per cent in 2015.

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.

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