Posted by: Daryl & Wendy Ashby | December 24, 2009

Multi-Family Developments Key

Multi-Family Developments Key to Rebound in Housing Starts

This year’s lull in residential construction activity has been driven by fewer apartment condominium developments breaking ground across the Victoria CMA. As a result, the number of homes currently under construction in the region is down nearly 60 per cent from the peak of July 2008.

The decline in the number of homes under construction, the shrinking supply of existing homes, and the recent pick up in resale market demand will prompt builders and developers to start more homes in 2010.

Construction is expected to start on 1,350 new homes next year, up significantly from the 2009 level, but below the fifteen year average of 1,700 homes.

Risks to the new construction forecasts are on the up-side, as the forecast assumes a number of planned multi-family developments will not break ground until 2011. If key drivers of housing demand (employment, consumer spending, and consumer confidence) improve quicker than anticipated, the construction of a number of these planned developments could start sooner rather than later in the forecast horizon.

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