Red Deer housing starts slide

A shortage of lots in Red Deer is resulting in a decline in housing starts for 2011. Canada Mortgage and Housing Corporation released its statistics for the month of September, July to September and year-to-date.

A shortage of lots in Red Deer is resulting in a decline in housing starts for 2011.

Canada Mortgage and Housing Corporation released its statistics for the month of September, July to September and year-to-date.

In general, there’s a drop in Red Deer single-family housing starts while housing starts in general are faring better in surrounding communities.

For the month of September, Red Deer saw a 38.5 per cent drop in single-detached housing starts from the previous September.

It amounted to 16 in 2011 compared with 26 in September 2010.

Multiple-family starts stayed the same in September 2010 and again in September 2011 — eight.

In total, September housing starts dropped to 24 from 34 in September 2010, or a 29 per cent decrease.

“This is just a slow month,” said Regine Durand, CMHC market analyst in Calgary.

Year to date, from January to September, Red Deer experienced a 19 per cent slip in single-detached starts, with 236 compared with 292 in 2010. But multi-family improved by 12 per cent — with 198 in 2011 as opposed to 177 in 2010.

Overall, Red Deer housing starts dropped by 7.5 per cent in 2011 — with 434 compared with 469 in 2010.

Durand said this overall figure shows that Red Deer isn’t doing too bad. CMHC was predicting around a 14-per-cent decrease.

“At CMHC, we were expecting a slower year,” she said.

“The demand is there — the local economy is getting stronger.”

Two factors have slowed Red Deer housing starts — a lot shortage, as well as a higher differential between the price of a new home and an existing home.

One example of a shortage is in Timberlands, where in Phase 1A there are only five lots left.

“In speaking with builders, we have heard of constraints on the lot side,” Durand said.

The good news is that Red Deer will have a higher supply of lots later this year. The City of Red Deer confirmed it’s bringing on 35 more lots in Timberlands Phase 1A, she added.

There’s a potential to have 592 new lots in Red Deer next year, Durand said.

The difference between a new single-family detached home and an existing one was at the end of 2010 around $82,000. At the end of August, it grew to $106,000. “That may have detracted demand from new to resale,” Durand said.

For the months of July through September, Central Alberta’s smaller communities saw increases in housing starts.

“They don’t have that lot shortage,” said Durand.

Single-detached housing starts in Lacombe totalled 27, compared with 20 in the 2010 period. Lacombe County’s figures came in at 23 for the 2011 quarter, as opposed to seven in the previous year period.

Red Deer County’s figures for single-family detached totalled 17 in the 2011 period, 13 in the 2010 period. Sylvan Lake’s came in at 29 compared with 22.

Multiple family starts increased to 10 from two for Lacombe, seven from two for Sylvan Lake (Lacombe County and Red Deer County reported none for each period).

In total, Lacombe housing starts for this quarter increased by 68 per cent, Sylvan Lake by 50 per cent, Red Deer County by 31 per cent.

Lacombe County’s total housing start came in at 23 in 2011, up from seven in the 2010 quarter. No figure was given for percentage increase.

For the January through September period, Red Deer County’s total housing starts climbed 2.4 per cent while Lacombe’s decreased 25.4 per cent.

ltester@bprda.wpengine.com

— copyright Red Deer Advocate

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Red Deer Rebels forward Ethan Rowland battles with Medicine Hat Tigers forward Brett Kemp during WHL action at the Centrium Saturday night. (Photo by ROB WALLATOR/Red Deer Rebels)
Tigers claw back, hand Rebels 11th straight loss

Tigers 5 Rebels 2 The same old issues continue to plague the… Continue reading

There were six additional deaths across Alberta reported over the past 24 hours, bringing the death toll to 1,926 since the beginning of the pandemic. (File photo)
AstraZeneca vaccine is ready to be used at a homeless shelter in Romford, east London, Wednesday, Feb. 3, 2021. THE CANADIAN PRESS/AP-Frank Augstein
AstraZeneca-linked blood clot confirmed in Alberta

A case of an AstraZeneca-linked blood clot has been confirmed in Alberta,… Continue reading

The Red Deer Catholic Regional Schools Board of Trustees selected the name St. Lorenzo Ruiz Middle School to be built in the north end of Red Deer. (Photo Courtesy of  Red Deer Catholic Regional Schools)
Red Deer Catholic Regional Schools raises about $8,720 for Terry Fox Foundation

Red Deer Catholic Regional Schools raised about $8,720 for the Terry Fox… Continue reading

A nurse gets a swab ready at a temporary COVID-19 test clinic in Montreal, on Friday, May 15, 2020. Health Canada has reversed course on home test kits for COVID-19, saying it will now review applications for such devices. THE CANADIAN PRESS/Paul Chiasson
Alberta declines Ontario’s request to send health-care workers

Alberta is “not in a position” to send health-care workers out of… Continue reading

Red Deer Public Schools will not pilot the new draft curriculum at its elementary schools. (File photo contributed by Red Deer Public Schools)
UPDATED: Red Deer Public Schools says no to piloting new curriculum

Alberta Teachers’ Association support school boards

Each spring, the Okanagan Fest-of-Ale is held in Penticton. This year, as a result of the COVID-19 pandemic, the festival will not be held. However, beer is still available. How much do you know about this beverage? (pxfuel.com)
QUIZ: How much do you really know about beer?

Put your knowledge to the test with this short quiz

Ontario Premier Doug Ford points on a COVID-19 caseload projection model graph during a press conference at Queen's Park, in Toronto, Friday, April 16, 2021. Ontario was set to backtrack on controversial new police powers to enforce stay-at-home orders implemented in the battle against COVID-19.THE CANADIAN PRESS/Frank Gunn
Ford backtracks on new police COVID-19 powers amid intense backlash

TORONTO — Furious criticism of new anti-pandemic powers that allow police in… Continue reading

The official program for the National Commemorative Ceremony in honour of Prince Philip, The Duke of Edinburgh, sits on an empty pew prior to the ceremony at Christ Church Cathedral in Ottawa on Saturday, April 17, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Prince Philip remembered as ‘a man of great service’ during Canada’s memorial service

Canada’s commemorative ceremony in honour of the late Prince Philip offered a… Continue reading

CF Montreal head coach Wilfried Nancy speaks to his players during the team's practice Tuesday, March 16, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
CF Montreal puts on a show, defeating Toronto FC 4-2 in MLS season opener

FORT LAUDERDALE, Fla. — CF Montreal, carving open Toronto FC’s defence, cruised… Continue reading

Demonstrators using umbrellas as shields approach a point in a perimeter security fence during a protest over the fatal shooting of Daunte Wright during traffic stop, outside the Brooklyn Center Police Department, Friday, April 16, 2021, in Brooklyn Center, Minn. (AP Photo/John Minchillo)
Journalists allege police harassment at Minnesota protests

Some journalists covering protests over the police fatal shooting of Daunte Wright,… Continue reading

A container ship is docked in the Port of Montreal, Wednesday, February 17, 2021 in Montreal.THE CANADIAN PRESS/Ryan Remiorz
Montreal dockworkers begin weekend strikes as talks drag on

MONTREAL — Dockworkers at the Port of Montreal kicked off a series… Continue reading

Brad Dahr, 53, is facing numerous charges. (Photo contributed by Alberta RCMP)
Alberta man charged for alleged sexual offences against children

An Edmonton man has been charged for alleged sexual offences against children… Continue reading

A person walks past a COVID-19 mural designed by artist Emily May Rose on a rainy day during the COVID-19 pandemic in Toronto on Monday, April 12, 2021. Employment lawyers say flouting COVID-19 public health orders when off the job or coming into work while knowingly sick could warrant discipline in the workplace. THE CANADIAN PRESS/Nathan Denette
Risky pandemic behaviour off the clock could mean workplace discipline: lawyers

CALGARY — Employment lawyers say flouting COVID-19 public health orders when off… Continue reading

Most Read