A 121-unit apartment development gave a boost to an otherwise slow January for Nanaimo‘s new home construction industry.
The four storey building going up on at 775 Terminal Ave. propped up the latest new housing starts report from Canada Mortgage and Housing Corp.
Single-family home starts were flat from January 2011, with a total of 19 permits for single homes was issued in January, mirroring exactly last year’s numbers. But that 121-unit apartment building pushed up new multi-family construction to 10 times what it was in January 2011.
It’s not uncommon for the construction industry to experience a slow-down in the winter months, but following on a slow fall construction season, Nanaimo’s home builders say they’re feeling the pinch this winter.
“Popular consensus out there is it’s a tough time right now,” said Byron Gallant, Canadian Home Builders Association, Mid-Island president.
Nanaimo city hall issued 159 permits last month, more than four times the 33 issued last January, but “Nanaimo is really strong because a new rental building was started,” said Travis Archibald, CMHC market analyst. It’s good news for commercial contractors, but does nothing for custom home builders.
It was a similiar story in Victoria, where single-family housing starts were down 46%, while construction of multi-family housing is up 143%.
“We’re hoping for permit applications to pick up in February, as they typically do,” Gallant said.
Excerpted from the Nanaimo Daily News
