Condos still king among builders

Edmonton-area apartment and condo builders are experiencing their strongest year since 1982.

This September, 1,3069 multiple units were started, compared to 522 in September 2006.

For the full year, builders “are poised to exceed 6,000 units for the first time since 1982,” said market analyst Richard Goatcher at Canada Mortgage and Housing Corp., which released the figures, Tuesday.

“The lion’s share are condominiums,” Gaotcher said.

For the year to date, Edmonton has captured 72 per cent of the area’s multiple starts.

“A lot of people who look at condos are young professionals without children or empty-nesters who work downtown and want to talk to work or to the Winspear,” Goatcher said.

SINGLE STARTS FALL

The area’s single family starts fell 24 per cent in September, from last September.

They also had fallen in July and August.

“The single detached builders have been throttling back for a while now, similar to the pullback in the resale market, caused by a consumer reaction to the price increases,” Goatcher said.

“And there has been a run-up in inventory.”

“The single-detached house building industry is still expected to achieve the second-best year on record,” he said.

For the year to date, Edmonton city has captured only 49 per cent of the area’s single-family starts.

“Single-family housing goes where the land is cheaper,” Goatcher says.

“Younger families want to be in the suburbs,” he added.

Total housing starts in September were up 54 per cent in Red Deer, 40 per cent in greater Edmonton, 34 per cent in greater Calgary, 34 per cent in Wood Buffalo, and 20 per cent across Canada.

Edmonton Journal – Wednesday, October 10, 2007