High consumer confidence and strong economy
Ashley Ford
Province
Housing starts across the Lower Mainland are on track for their best performance since 1994, the latest numbers from Canada Mortgage and Housing Corp. show.
First-half starts roared ahead by 16 per cent from a year ago, CMHC said yesterday.
There were 9,961 total units with single-detached starts, increasing 31 per cent to 2,980 units, the federal agency said.
Multiple starts rose 11 per cent to 6,981 units.
“If this level of activity continues for the rest of the year we could be close or even pass the 20,473 starts in 1994,” said Peter Simpson, CEO of the Greater Vancouver Homebuilders’ Association.
“We are certainly seeing absolutely no faltering in the construction pace.”
Simpson does not expect any decline because consumer confidence remains high, the economy is strong and job growth is robust.
The best year on record was 1989, when there were 21,834 starts. “Homebuilders continue to ramp up new home construction in response to solid housing demand,” said Robyn Adamache, CMHC Market Analyst.
“Inventories of both new and resale homes remain low in virtually all Lower Mainland communities.”
Again, Fraser Valley activity led the charge. Starts in the valley jumped nearly 36 per cent to 4,731 units in the first six months from the same period last year.
Single- and multiple-unit housing starts saw increases, with the former up 26 per cent and the latter expanding 45 per cent.
The busy activity is not confined to the Lower Mainland, CMHC says.
Urban B.C. housing starts rose 14 per cent to 16,309 units in the first half over last year.
Single detached starts climbed 18 per cent to 6,216 units, and multiple starts rose 12 per cent to 10,093 units, compared with last year.
© The Vancouver Province 2006
