Housing starts to decline in 2015, rents to rise: CMHC

According to Canada Mortgage and Housing Corporation, Thunder Bay will see a slight decrease in new home construction this year.

But the organizations’ spring housing outlook indicates the city could rebound in 2016.

Figures supplied by CMHC on Monday estimate total housing starts will drop to 230 this year, but could jump back to 255 a year from now.

"Demand for new homes will soften in 2015 due to more choice in the resale market, and a lack of job growth," said Warren Philp, CMHC market analyst, in a release issued on Monday.

"A slight improvement in employment conditions in 2016 will lead to greater housing demand and therefore starts will edge up.”

The report says 1,460 homes will be sold this year, an increase of just 1.2 per cent, a number that’s predicted to drop by 10 in 2016. But greater numbers in the resale market will limit price growth to just 4.7 per cent, down from 8.1 per cent last year.

Vacancy rates will also increase, a fact blamed on no job growth and an increase in renters transitioning into home ownership.
Rents should increase by slightly more than two per cent both this year and