June 21, 2012
Sunny outlook for Calgary housing through 2013
A strong job market and low mortgage rates will fuel Calgary’s housing growth through 2013, even as the Canada Mortgage and Housing Corporation sees a 24.8 per cent rise in total housing starts in the Calgary Metropolitan Area this year from 2011 levels.
According to the CMHC Spring 2012 Calgary Housing Market Outlook, total housing starts in the metropolitan area are forecast to hit 11,600 units in 2012, up from 9,292 units last year. A slight moderation is expected in 2013, with housing starts expected to reach 11,400.
“Both single-detached and multi-family builders are expected to produce more units in 2012, with the apartment segment seeing the largest gains in new construction,” says Richard Cho, CMHC’s Senior Market Analyst for Calgary.
“Improved job creation, rising incomes, increased net migration and low mortgage rates will support housing demand in 2012 and in the following year,” he adds.
Single-detached starts are forecast to reach 5,700 units in 2012, up 12 per cent from 2011. CMHC says to expect another four per cent increase to 5,900 units by 2013.
Multi-family starts in 2012 are also predicted to surge by 40 per cent to 5,900 units, fuelled by demand from first-time homebuyers, investors and those looking to downsize. The CMHC says the inventory of complete and unabsorbed units has also declined from their elevated levels after the economic crisis in 2008.