Kingston Housing Starts Declined in the Third Quarter

OTTAWA, ONTARIO--(Marketwire - Oct. 11, 2011) - According to preliminary data released today by Canada Mortgage and Housing Corporation (CMHC), housing starts in the Kingston Census Metropolitan Area (CMA) decreased in the third quarter of 2011. Total preliminary starts contracted to 127 units or 85 units fewer than in the same period in 2010.

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After strong performance in the previous two quarters, total housing starts declined to 127 units between July and September 2011. The decline was mainly due to weaker construction activity in Kingston City. This third quarter moderation marked the lowest quarterly number of total starts since the first quarter of 2010, when developers began construction on 86 units.

Single-detached housing starts, which are less volatile and therefore a better indicator of trend in construction activity, dropped from the level recorded in the third quarter of last year. Meanwhile, semi and row starts registered significant increases this third quarter compared with the same period a year earlier.

"A slow local economic recovery and increasing unsold new home inventories are factors explaining the weak performance in single-detached construction this third quarter," noted Abdul Kargbo, Market Analyst at CMHC for Kingston.

"Generally, slow economic and job market activity translate into a shift in consumer demand away from single-detached homes to less expensive type of dwellings. This in turn has supported row and semi-detached construction activity in Kingston," concluded Kargbo.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

For more information, visit www.cmhc.ca or call 1-800-668-2642.