Winnipeg—July 11, 2005
New housing starts in the Winnipeg Census Metropolitan Area (CMA) this past month were buoyed by a strong showing on the multiple-family side. According to the preliminary figures released today by Canada Mortgage and Housing Corporation (CMHC), there were 286 housing starts in the Winnipeg CMA during the month of June, 29 per cent more than were started in June of 2004. Despite a weak showing in May, year-to-date total starts, at 1,080 units at the mid-point of the year, are now running 14 per cent ahead of the total for the same period last year.
June was another strong month for multiple-family starts as work began on a number of apartments and townhouses in the city. There were 116 multiple-family units started last month, compared to the 38 that were started in June of 2004. With the year half complete there have been 289 units started in 2005, more than three times the number that were started by this time last year. “Multiple-family starts this year have been driven by strong demand for senior’s housing as more than half the units started so far this year have been specifically designed to cater to this market,” noted Dianne Himbeault, CMHC’s Senior Market Analyst for Manitoba.
Single-family starts maintained a healthy pace in June, as foundations were laid for 170 homes, only 14 fewer homes than were started during June of last year for a drop of just under eight per cent. The slowdown was more pronounced outside city limits where starts were down 44 per cent in comparison to one year earlier. The situation was much improved within city limits where the number of single-family homes started in June 2005 saw a jump of almost 12 per cent compared to the number started in June 2004. This recovery is welcome news as starts fell significantly off the pace in May. This gain was not enough to set starts back on track, however, as year-to-date single-family starts are still lagging 7.5 per cent behind where they were after the first six months of 2004. “As we move forward, builders will be challenged to keep pace with last year’s level of activity. While demand remains high, buyers are facing a dwindling selection of serviced lots, and rising prices,” added
Himbault.
Nationally, total housing starts for all urban centres declined three per cent in June of 2005 compared to June 2004. Single-family starts were down five per cent in a year-over-year comparison, while multiple-family starts kept pace with last year under the same comparison. Year-to-date total national housing starts were down five per cent.
CMHC is the Government of Canada’s national housing agency and reports on new housing starts on a monthly basis.
For more information, please contact:
Dianne Himbeault,
Senior Market Analyst
phone: (204) 983-5648,
email: dianne.himbeault@cmhc.ca
Canada Mortgage and Housing Corporation, Winnipeg Office
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