CMHC - Housing Now - September, 2006.
New Construction Activity
Housing starts in the Vancouver CMA totalled 1,313 units in August, a 24 per cent decline over 2005, and the lowest tally since 2001. Despite this drop, year-to-date starts remain elevated. August activity pushed yearto- date starts up to 13,437 units, a 13 per cent increase over 2005, and the second highest performance since 1993.
With strong demand driving new home activity, builders broke ground on 493 single-detached homes in August, 11 per cent more than the same month in 2005. As a result, year-to-date starts of single-detached units have climbed to 4,006 units, a 26 per cent increase over the previous year, and the highest activity since 1994. Although completions have increased significantly during the first eight months of 2006, strong starts activity has helped boost the number of single-detached homes under construction for the sixth consecutive month to 3,728, a year-over-year increase of 20 per cent.
In the multi-family market, which includes row, semi-detached, and apartment units, August starts fell 36 per cent to 820 units as compared to the same month in 2005. Nonetheless, with 9,431 units started from January to August, activity continues to outpace 2005 by eight per cent.
The strong activity in the multi-family market has been warranted by declines in inventory to near-record low levels, particularly in the apartment sector. After a fourth consecutive monthly inventory decline in August, only 114 complete and unabsorbed apartment units were recorded in the Vancouver CMA. In comparison, monthly inventory levels during previous the five and ten-year periods averaged 650 and 1,560 units, respectively.
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The Schacter Team - Langley Real Estate.