B.C. new home construction in 2011 will stay on par with 2010 levels and rise nearly 10% in 2012, according to Canada Mortgage and Housing Corp. (CMHC)’s Housing Market Outlook.
The CHMC is forecasting 26,400 new housing starts in the province this year and 29,000 in 2012.
Carol Frketich, B.C. regional economist for CMHC, said the forecast 2012 levels are still below pre-recession levels.
“In 2007, we were at 39,195 [housing starts],” she said. “But 29,000 is very close to our 10-year average for housing construction in B.C.”
For 2011, the CMHC is forecasting 16,900 multiple unit housing starts, making up 64% of total starts. This is up from 15,017 multiple unit starts recorded in 2012.
Going into next year, Frketich said increases in housing starts on the multiple-unit front will begin to level off.
“It’s stabilizing,” she said, noting that the CMHC has forecast a 12.5% increase of muliple-unit housing starts for 2011, followed by a 1.2% increase on the multiples side in 2012.
But she noted that the proportion of multiple units compared to single detached units is continuing to trend upwards.
“As home prices rise, as land prices rise, there tends to be a shift more to multiple-unit starts.”
Jenny Wagler
Twitter: JennyWagler_BIV