October another strong month for local housing starts.
November 8, 2004 - Local housing starts remained firmly on track for another record year in October despite a pullback from September, Canada Mortgage and Housing Corp. reported Monday.
The Crown corporation said that construction began on 670 new housing units in Ottawa last month. That was a jump of 30 per cent from October 2003, making for the second strongest October in 20 years. The strongest October over the past 20 years was in 2002, with 757 starts.
On the year to date, the new home construction market has logged 6,088 starts, up 17 per cent from the same period a year ago.
The latest data is in keeping with the semiannual forecast that CMHC issued only two weeks ago, in which the corporation forecast 6,900 starts for this year. That will put 2004 second only behind 2003 for the highest number of starts in the past 16 years.
In May, CMHC was only forecasting 6,200 starts for 2004. In the coming year, higher mortgage rates and only modest employment growth is expected to slow demand for new housing. For 2005, CMHC is forecasting 6,200 starts, still a strong number by historic standards.
Driving new home construction in October was multiple-type dwelling units. Multiples include more affordable types of housing such as condominiums, apartments and townhouses. CMHC reported that starts on multiples jumped 73 per cent from the year before, to 414 starts.
"Row (or townhouse) construction really took off this October after picking up steam in September," Christian Douchant, CMHC's senior market analyst for Ottawa, said in the report. He added that townhouse starts were up 171 per cent from the year before, while apartment starts picked up by 20 per cent.
On the year to date, multiple starts are ahead of 2003 by 23 per cent, at 3,357.
In the costlier end of the market, single-family homes, the number of starts was down seven per cent from October 2003, to 256 units.
"Despite the decrease in October, single-family construction remains firm," Mr. Douchant added. "Construction last month was still well above the 10-year average for single-family homes in Ottawa for an October, which is about 209 units."
On the year to date, singles starts are up by 11.6 per cent, at 2,731.
The strong October follows a stellar September that boasted 753 starts, hitting a 17-year high for that month. Multiple starts in September were up by 111 per cent from the year before, while singles gained 73 per cent.
© Copyright 2004 The Ottawa Business Journal