Last year was a good one for local home builders.
For the first time since 2005, and just the second time since 1994, single-detached housing starts hit 200 units in 2010, with 13 in December capping the total at 204 for the year.
That’s a 23.3 per cent increase over the 166 started in 2009. The 10-year annual average is about 180.
Canada Mortgage and Housing analyst Warren Philp says there are plenty of factors for the improvement, including a sluggish number from the year before.
"Thunder Bay rebounded relatively strongly," Philp said. "We also have to look at the low mortgage rate adn the slightly improved ecomony, as evidenced by employment in the city. And we had some in-migration we've been seeing, undoubtedly due to the diversification of the economy and the jobs that we're starting to see show up in the knowledge-based industries."
Starts were most frequent in Neebing Ward, where debate about a proposed wind farm raged for most of the year.
McIntyre and Red River wards were the next busiest within city limits, while Oliver-Paipoonge and Shunia Townships witnessed the most in the outlying municipalities in the census metropolitan area.
"It continues to be the three wards that seem to be vying for top spot over the years ... Those three wards are predominantly where new construction has happened over the last 10 to 20 years," Philp said.
While 2010 numbers show promise, Philp doesn't have as much faith that 2011 single-housing starts will be able to match the bar set last year. And, he added, even the 200-mark pales in comparison to the city's peak years.
"The 204 might sound like a great figure in terms of recent history, and it is, but we have to go back to the '70s and '80s when we reallly saw some high numbers in terms of single (starts). In fact I was looking back at the history and it was 1977 when we had 670 single-detached starts," Philp said.
"So the 204 looks a little paltry compared to the 670. But it's a different era now. It's a different type of economy. It's a more mature market, an older community. But we are still generating housing demand and the evidence is there with us going over 200 starts this year."
Philp said the more jobs the city produces, the better the housing start numbers will be. He has high hopes for the development surrounding the Ring of Fire, which some city officials have said has the potential to replace most, if not all, the jobs lost by the forestry collapse.
"That directly translates into people coming into your comnunity, putting down some roots and establishing households and how they feel about their situation. Jobs in the mining sector traditionally are higher-paying jobs, and that would certainly bode well for the realtors and homeowners in Thunder Bay."
