With the oil recession well under way, Calgary new home construction is expected to decline to levels not seen in more than 25 years.
The Canada Mortgage and Housing Corporation (CMHC) has reported that housing starts in the area will decline 30.5 per cent this year, to 11,900 units, followed by a further 16 per cent drop next year, to 10,000 units. There will be a slight two per cent rebound in 2017, CMHC predicts, as job creation and net migration improve.
“The economy continues to face headwinds largely centred around the decline in the price for oil,” said CMHC analyst Richard Cho. “We’re also seeing that reflected in the housing market.”
“As far as our forecast goes, we’re not expecting to see a quick rebound in activity because the price for oil will remain relatively low for the next couple of years and that will obviously have an impact on employment growth, migration and income.”