The number of multi-family dwelling starts in Cochrane – including apartments, townhomes and duplexes – rose in 2015, according to information from Canada Mortgage and Housing Corporation (CMHC).
From Jan. 1 until the end of November 2015, Cochrane saw increases to all multi-family dwelling starts, though it did see a decrease in the number of single-family home starts.
“There are a number of factors that have been contributing to the rise in multi-family construction,” said Richard Cho, principal of market analysis for the Calgary area with CMHC. “One is affordability. These units are priced lower.”
Among increased starts in Cochrane was the number of apartments, up to 107 from 32. Duplexes increased to 158 from 112, and townhomes were up to 391 from 228. Single-family dwellings decreased from 413 in 2014 to 272 last year.
“The single-family home has faced a number of headwinds throughout 2015, similar to Calgary,” Cho said. “In Calgary, we’ve seen supply on the resell front has increased. A single home is priced higher, and with the price of oil you’ve seen the impact on employment and migration.”
According to the CMHC, the average absorbed price (all costs recovered) for single-family dwellings in Cochrane reached $619,729 last year, an increase over 2014’s average price of $524,160. In Calgary, single-family dwellings cost $759,140 in November 2015.
The demand for lower-priced homes was attributable to the slump in the economy, according to Cho.
“It’s largely driven by what we see in the economy. Employment and migration, we expect those to be flat this year,” Cho said. “We’re not going to see a big boost in housing demand. The economy is still in the process of adjusting to lower oil (prices).”
Numbers from communities in Rocky View County comparable in size to Cochrane tell a similar story – Airdrie saw an increase in multi-family dwellings starts from 784 in 2014 to 848 in 2015, while Chestermere saw a decrease in single-family home starts from 336 in 2014 to 195 in 2015.
Cho said forecasts for 2016 see single-home starts remaining “pretty similar” to 2015, with multi-family starts set to decline.
“For the most part, new home construction this year is forecasted to come down,” Cho said. “The total will be down 16 per cent.”
