New housing investment numbers show stable real estate market

THINK OUTSIDE THE BOX:  Many of Alberta’s housing indicators such as housing starts, building permits and the newest housing investment numbers suggest that our housing market here in Alberta is stable and a far cry from the nosedive many were expecting.

Even though housing starts in Alberta have dropped off, recent data on housing construction investment supports the idea that our province’s housing sector remains stable and is in decent shape. Surprisingly, total investment in new residential building construction rose to over $1 billion in April, eight per cent higher than last year’s levels.

Construction investment increased in most housing types, but higher density dwellings still remain most popular. Double and row-type housing grew by 14 and 20 per cent respectively while investment in apartment housing led the charge and grew 36 per cent. Single-type housing fell by a little more than one per cent.

Alberta fell just behind British Columbia and Nova Scotia for the largest yearly increase in investment amongst all provinces. B.C. saw residential spending levels rise by 18 per cent while Nova Scotia experienced 10 per cent growth. Newfoundland and Labrador displayed the largest annual decline (28 per cent). On average, investment rose in all dwelling types across our country in April (+2.3 per cent).

Many of Alberta’s housing indicators such as housing starts, building permits and the newest housing investment numbers suggest that our housing market here in Alberta is stable and a far cry from the nosedive many were expecting.

Nick Ford      Economist     June 24, 2015

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