Construction started on fewer Prince George homes last month compared to March 2016, but industry reps say the business is still doing well.
Canadian Mortgage and Housing Corporation Senior Market Analyst Taylor Pardy notes the city had eight projects break ground in March, which includes six single-detached homes and two multi-units. During the same time last year, there were 19 (16 single-detached, three multi-unit). Year-to-date there have been 19 starts; last year there were 26.
Pardy says 2016 was an exceptionally strong year for housing start. He sees a correlation between this year’s diminished numbers and the anticipated cool down in BC’s immigration and population rates.
“It’s not a negative thing; market activity is still actually relatively strong … Housing starts were up about 16% last year. MLS sales were roughly on par with 2015 levels and prices actually increased about 4% last year, so overall the market in Prince George right now that’s a relatively stable.”
The city is seeing shifts in demographic, which is adding to the market stability. Pardy adds there is a lot of demand from those between 20-34, looking for their first home, and those 55 and older. Even though the number of start are down – and are expected to keep to dip again next year – Pardy says the industry is doing just fine.
“We are anticipating some moderation going into 2017 and 2018, back towards the five-year average level of housing starts, which is around 187 starts per year.”
Pardy expects between 200-250 housing starts this year in Prince George, followed by 180-250 next year. The city had 313 in 2016.
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