Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

May 25, 2015 08:15 ET

Winnipeg Housing Starts to Remain Stable Through 2016

WINNIPEG, MANITOBA--(Marketwired - May 25, 2015) - According to Canada Mortgage and Housing Corporation's (CMHC) Spring 2015 Winnipeg Housing Market Outlook released today, total housing starts in the Winnipeg Census Metropolitan Area (CMA) are projected to be similar to 2014 and reach 4,225 units by the end of the year before easing to 4,200 in 2016.

"New housing demand will be supported by employment and wage growth, however rising inventories and lower levels of migration over the forecast period will temper increases in production," noted Dianne Himbeault, CMHC's Senior Market Analyst for Winnipeg. "Declines in the multi-family sector will be offset by slight increases in single-detached construction," she added.

After reducing production by 15 per cent in 2014, Winnipeg's single-detached homebuilders have seen inventories come down, prompting them to maintain the current level of production with an expected 1,875 single-detached starts in 2015. Moving forward, continued employment growth and elevated migration will support slightly higher production in 2016 to 1,900 units.

After four consecutive years of increases, multi-family construction, which consists of semi-detached units, rows, and apartments, decreased 4.7 per cent in 2014 to 2,371 units. With elevated inventories, builders will continue to lower production over the forecast period; however, given a shift in demand to higher density housing options, multi-family construction will remain elevated by historical standards. Starts in this sector will moderate one per cent to 2,350 units in 2015 with a stronger moderation of two per cent, or 2,300 units, expected in 2016.

Sales of existing homes in the Winnipeg CMA were stable in 2014 posting an increase of less than one percent. Factors supporting demand for resale homes, notably employment and wage growth, will strengthen in 2015 and result in growth of 1.3 per cent in 2015 to 12,300 transactions and a further 0.8 per cent to 12,400 transactions in 2016.

With moderately increasing sales and a growing number of listings providing balance to the market, the average MLS® price is expected to see the most moderate price increases in over a decade at 1.3 per cent in 2015, and 1.4 per cent in 2016 reaching $281,000.

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 www.cmhc.ca/housingmarketinformation.

Follow CMHC on Twitter @CMHC_ca

Additional data is available upon request

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Contact Information

  • Market Analysis Contact:
    Dianne Himbeault, Senior Market Analyst
    (204) 318-1754
    dhimbeau@cmhc.ca

    Media Contact:
    Dan Toth, Public Affairs Advisor
    (403) 515-2976
    dtoth@cmhc.ca