TORONTO – Canada Mortgage and Housing Corporation (CMHC) released September preliminary housing starts data for the Kitchener Census Metropolitan Area (CMA) today. Construction began on 160 homes, down from the 250 units started in the same month last year. This was the lowest level of September starts since 1996.

Foundations were poured for 81 single-detached homes in September, down from the 127 units started in September 2008. While the number of townhouse starts was higher in September, the number of semi-detached and apartment starts was lower. All municipalities in the Kitchener CMA recorded lower starts. For the first three quarters of 2009, total new construction is down from the same period one year ago with all types of housing showing declines.

“The weakness in the economy meant consumers remained hesitant and builders cautious,” said Erica McLerie, Senior Market Analyst for the Kitchener CMA. “A currently tight resale home market should translate into stronger demand for new homes, but as yet starts have not shown much movement,” added McLerie.

ONTARIO RESIDENTIAL HOME STARTS MOVE HIGHER IN SEPTEMBER

Toronto - Ontario preliminary Seasonally Adjusted Annual Rate (SAAR) of home starts across urban* areas increased to its highest level in over six months. An estimated 48,300 residential housing units broke ground in September, up from 43,200 units in August. Housing starts were pushed higher by increasing activity in the pricier single detached home sector. Multi family home construction, which includes semi detached, row and apartment construction, remained stable in September. Still, new home construction activity remained below levels one year ago in most urban Ontario centres.

“Residential construction activity has turned the corner and will show further signs of strength in the months ahead,” said Ted Tsiakopoulos, CMHC`s regional economist. “Buoyant resale markets in recent months, improving credit & labour market conditions and steadily declining new home inventories are all factors that will boost new home construction activity in the next few quarters,” added Tsiakopoulos.