Growth in housing good for economy

Residential construction is a bright spot in the Canadian economy, according to a national survey that points to good short-and long-term prospects for housing starts in most parts of the country.

The outlook for short-term housing starts is positive in all but three of the 27 metropolitan areas surveyed by the Conference Board of Canada for its June monthly monitor, based on residential building permit data.

The long-term outlook, based on demographic requirements, isn't quite as rosy, but it's still positive, with 14 of the areas expected to post gains in housing starts.

All but six of the areas reported year-over-year growth in housing starts, with London, Ont., Edmonton, Trois-Rivieres, Que., Victoria and Abbotsford, B.C., showing the greatest increases from May of 2009.

Trois-Rivieres and Saint John, N.B., were the only areas for which the outlook is negative in both the short-and long-term.

The largest year-over-year decline in housing starts was posted by Kingston, Ont., where starts fell from 2,151 in May, 2009, to 614 last month.

Housing starts comparing May 2009 with May 2010 according to the board of Canada (seasonally adjusted):

- St. John's. N.L. 1,689; 2,094

- Halifax 1,038; 3,227

- Saint John. N.B. 825; 732

- Quebec 5,997; 5,475

- Montreal 17,259; 18,801

- Trois-Rivieres, Que. 664; 1,819

- Saguenay, Que. 606; 785

- Sherbrooke, Que. 1,593; 1,749

- Ottawa-Gatineau 7,259; 11,415

- Kingston, Ont. 2,151; 614

- Greater Sudbury, Ont. 897; 811

- Thunder Bay, Ont. 177; 230

- Oshawa, Ont. 715; 1,397

- Toronto 22,060; 33,609

- Hamilton 1,126; 2,679

- St. Catherine's-Niagara, Ont. 1,199; 1,045

- Kitchener, Ont. 2,338; 2,314

- London, Ont. 1,071; 5,068

- Windsor, Ont. 409; 654

- Regina 421; 849

- Saskatoon 959; 1,966

- Calgary 4,494; 8,124

- Edmonton 4,207; 12,216

- Vancouver 5,807; 14,589

- Victoria 670; 1,795

- Abbotsford, B.C. 188; 501


(Source: Financial Post/Vancouver Province)