According to preliminary figures released by Canada Mortgage and Housing Corporation (CMHC), production of single-detached homes more than tripled with 570 starts compared to 171 units a year earlier.

“Recent sales activity and the decline in inventory have contributed to the rise in starts,” says Richard Cho, CMHC’s Senior Market Analyst for Calgary. “The housing market has improved considerably since the first quarter of 2009 when builders were facing elevated inventories and weaker demand conditions,” he adds. In the first quarter, the number of single-detached units breaking ground increased from 559 units in 2009 to 1,528 units in 2010.

Multi-family production —  consisting of semi-detached, row, and apartment units — reached 334 starts in March, an increase from the 126 units started a year earlier. “This represents the third consecutive month where multi-family starts increased on a year-over-year basis,” notes Cho.

To the end of March, there were 633 multi-family starts in Calgary, up from 187 units in the first three months of 2009. “For the balance of 2010, activity is forecast to surpass 2009 levels but still remain below historical norms due to elevated inventories,” he adds.