Rental construction boosted in June

Rental apartment construction boosted Kelowna area housing starts to 131 homes in June, according to Canada Mortgage and Housing Corporation.

Both detached home and multi-family starts were up from last June.

Construction began on a 71 rental apartment in June.

“More favourable construction and financing costs and expectations of lower vacancy rates through the longer term have triggered more interest in rental construction,” says CMHC Market Analyst Paul Fabri.

“Low mortgage interest rates have been a key factor contributing to increased demand for new detached homes.”

He says the inventory of new, completed and unoccupied detached homes has steadily declined since mid 2009, clearing the way for more detached home construction this year.

Penticton housing starts, led by the multi-family sector, reached 70 units this month, with 178 recorded year-to-date.

While in Kamloops, home starts totaled 56 units, with fewer multi-family starts offsetting gains in detached home construction.

Nationally, housing starts were down slightly in June, slipping to 189,300 units, seasonally adjusted at annual rates.

In urban British Columbia, the seasonally adjusted annual rate of housing starts edged up to 23,600 units, SAAR.