The Condominium Market Has Declined Recently

The worldwide economic crisis has impacted themonth in a row that single property starts had grown,
market in condo construction more strongly than anybringing them from their lowest level of the economic
other part of the real estate market in Canada.  Ruraldownturn, in the preceding April, to the best they have
areas have experienced an rise in house starts, andbeen over the last few years.
there has been long-term growth in starts of singleThere has been a significant reduction in multiple
family buildings, but the rate of building of apartmentresidency real estate construction in the Toronto
buildings and condos in Canadian cities, like downtownmarket over a few consecutive months, with a
Toronto condos, has declined.marked decline in interest in building high rise apartment
This decline in building of multiple occupancy propertiesbuildings and Toronto condominiums. Toronto is typical
has negatively affected the overall average for houseof the national situation, however, since this drop in
starts in March, translating in a drop of 1.5% in all kindsmultiple family units was paired with an increase in the
of house starts, nationwide. This was the first instancenumber of starts for single family low rise apartments
that there had been a drop in housing starts in 2010.and rows.  A knowledgeable market analyst from the
January and February had healthy development ratiosCMHC (Canada Mortgage and Housing Corporation),
of 7.5% and 6%, respectively. There were 189,000Shaun Hildebrand, who focuses in the Toronto area,
starts in January and 200,400 in February, but onlyfeels that things may soon change. He said that building
197,300 in March.of condominiums was expected to rise soon, in
It is in major cities that the fall in house starts has beenreaction to the increasing desire for affordable
most dramatic. Some rural sectors have proceeded toaccommodation in the area.
experience an growth in construction, even as theStarts of multiple occupancy buildings do tend to
country's average has tipped over into a decline.fluctuate more uncontrollably than those of single
 There was a drop of 4.2 percent in metropolitanfamily houses, with variations occurring far more
starts in March, while rural starts grew from February'squickly.  Bob Dugan, chief market analysis economist
17,600 to a total of 22,100 in March.for the CMHC (Canada Mortgage and Housing
This demonstrates the adjustment in starts of multipleCorporation) believes the market for condominiums in
family dwellings, which are usually built within a city orCanada to be a variable one.
on its outskirts. Rural homes tend to be single familyThere was a fall of 0.5 percent during February in
homes.building permit demands, specifically impacting requests
There was an increase during March in the amount offor multiple unit buildings, which was an important
starts for single family buildings, of 6.9 percent, whileelement in the decrease in housing starts of these
starts of multiple unit dwellings fell by 15.2 percentproperties in March.
during the same month.  March marked the eleventh