Calgary builders still battle glut of inventory
November 12, 2017
While the housing market is improving, Calgary home builders to continue to battle a glut of inventory, a reminder of the record-high construction prior to the 2014 economic slump.
As of mid-year, Calgary’s inventory of completed and unsold new homes reached 1,917 units, according to a survey by Canada Mortgage and Housing Corp. (CMHC). This compares with an average of 831 units in the period from 2007 to 2016.
The glut is primarily in the multi-family sector, where 1,478 condos or townhomes have been completed but remained unsold, as of June 2017.
However, CMHC noted that few housing starts and improving economic conditions are expected to reduce inventory levels in the second half of 2017.
Across Alberta, total housing starts are forecast to increase to a maximum of 30,900 in 2018, down slightly from this year. Starts of multiple-housing units are forecast to be between 12,000 to 15,600 units in 2018, down from a maximum projection of 17,200 this year, according to CMHC.