Looking for Tenders

Article

CANADATA: Canadian construction industry overbuilding apartments: Altus Group economist

0 43 Home

by Journal Of Commerce

Canadian builders are making a few too many apartment buildings, says a speaker at the CanaData Construction Industry Forecasts Conference.

Canadian builders are making a few too many apartment buildings, says a speaker at the CanaData Construction Industry Forecasts Conference.

“The caution right now is that we’re building slightly too many apartments and not enough single family homes,” said Peter Norman, Chief Economist of Altus Group and General Manager of Altus Group Economic Consulting. Norman made his comments during a presentation at the 27th annual CanaData conference, taking place today at the Liberty Grand Conference Centre at the Canadian National Exhibition grounds in Toronto.

He showed several charts, including one displaying the number of unsold homes, with one line graph representing apartments and row houses and the other showing single family homes.

He gave a cautionary message on the home construction market, noting that since 2001, the number of households formed has been less than the number of housing starts.

We need about 170,000 to 180,000 new homes each year in Canada, he said, while showing a bar graph depicting both housing starts and household formation statistics for five-year periods back to 1971.

For each five-year period up to 2001, the bar showing household formation was about the same size as the one depicting housing starts.

But from 2001 to 2006, housing starts averaged 216,000 per year while an average of 178,000 households were formed each year. There was a discrepancy again in the 2006-to-2011 period, when household formation averaged 171,000 per year while starts were 193,000 per year.

“Particularly on the first time buyer side we’re starting to see things slow down,” he said. “This is an area of caution that we continue to watch.”

JOC DIGITAL MEDIA

Leave a comment

Or register to be able to comment.

Copyright ConstructConnect TM. All rights reserved. "ConstructConnect" is a dba for CMD Holdings.
The following rules apply to the use of this site:
Terms of Use and Privacy Statement