NORTHWEST LEADS FIRST-HALF STARTS
Multi-family development increases year-over-year
New construction of multi-family development in the Calgary area through the first half of 2018 topped the same time last year by 11.5 per cent, with developments located in northwest Calgary setting the pace.
Ground broke for 3,907 multifamily units of all kinds between Jan. 1 and the end of June, up from 3,509 year over year, says Canada Mortgage and Housing Corp.
The census metropolitan area counts work in neighbouring cities and towns, such as Airdrie, Cochrane, and Chestermere.
Multi-family development includes apartment-style condos, townhomes, and duplexes. In all cases — when looking at the first six months of 2018 — communities in northwest Calgary led the tally.
“In general, I think the northwest holds a lot of appeal for people,” says Robert Toth, marketing lead for Morrison Homes MultiFamily division, which is currently in pre-construction sales on its Q Condominiums in Sage Hill Quarter development in the northwest Calgary community of Sage Hill.
It’s a well-connected end of the city, says Toth, singing out “easy access to the (Calgary International Airport), it’s not far from the university, there’s convenient access to the mountains.”
Toth says part of the credit for multi-family growth in the northwest is due to homes being typically more affordable than areas such as those located in downtown Calgary, while still possessing “tons of amenities.”
The planned Q Condominiums elevate that access, surrounded by 240,000 square feet of commercial space. The commercial component is now under construction.
Since launching sales in June, “interest has been great,” says Toth, adding much of the demand, to this point, has been from the downsizing demographic.
Comparing year over year, the most substantial increase in new construction six months into this year came from the apartment segment, rising 26 per cent to 2,699 starts from 2,136 a year earlier, says CMHC.
With shovels turned on 945 units, developments in northwest Calgary accounted for 35 per cent of the total activity in the Calgary area. Southeast Calgary was the second most active area with 543 apartments starts, says CMHC.
The Beltline District — which paced the Calgary area with 497 starts over the first six months of 2017 — was the third busiest area with 462 during the same time this year.
Multi-family starts between Jan. 1 and the end of June also included a year over year uptick from duplex builders, while townhome starts pulled back.
Shovels turned for 602 duplexes in the Calgary area, up six per cent from 568 a year earlier.
With 154 starts, northwest Calgary not only led the Calgary area six months into 2018, but more than doubled the next most active area — the city’s southwest end — which ended the first half with 76 starts.
Northwest and southwest Calgary also led the first half of 2017 in duplex starts, with 146 and 72, respectively.
Over the first half of 2018, 666 units took root at townhome developments in the Calgary area, easing from 805 year over year.
The bulk of the new construction in this segment has been on the north end of Calgary, where 154 in the northwest and 153 in the northeast carried the pace for the Calgary area.
While people looking to buy a new home that was ready for immediate possession had more duplexes and townhomes to pick from at the end of the first half of 2018 than the same time last year, apartment options pulled back, says CMHC.
There were 979 apartments built but unabsorbed in the Calgary area at the end of June, dipping 14 per cent from 1,150 a year earlier. The North Hill area and downtown Calgary led all ends of the city with 192 and 174 units, respectively.
When looking at the overall decline in apartment supply year over year, developments in northeast Calgary played a central role. The quadrant saws its immediate possession unit count slip from leading the city at 274 in June 2017 to 147.
For new supply of townhomes and duplexes in the Calgary area last month, each segment climbed 26 per cent year over year.
There were 239 constructed but unabsorbed duplexes, paced by 64 in northwest Calgary, followed by 48 in the southeast and 34 in the northeast. Townhome inventory reached 203 units in June. This was topped by a tally of 48 in the northwest, 41 in the Fish Creek area, 35 in the northeast and 17 in the southwest.