Detached home construction rising

Housing starts over the first quarter of 2010 continue to far outpace levels from a year ago.

In Kelowna, construction began on 249 homes (122 single-detached and 127 multiple family units) over the first three months of 2010. That's an increase of 246% over 2009.

Vernon and Penticton saw similar increases over 2009 levels. Vernon was up 212% (53 starts compared to 17) while Penticton realized an increase of 642% (89 as opposed to 12).

Detached home construction led the way in Kelowna and Vernon in March.

Kelowna had 44 housing starts in March while Vernon saw 17 new starts. All units were single detached homes.

"Detached homes have been the focus of new home construction in 2010,” says CMHC market analyst Paul Fabri.

“New home buyers are taking advantage of favourable interest rates and lower construction costs."

Fabri says the upswing in detached homes is in line with CMHC's 2010 forecast.

He says strong price competition from a well supplied existing home sector as well as lingering inventories of new, completed and unoccupied units have constrained apartment/condominium construction in 2010.