Thursday, November 7, 2013

Low-Rise Dwellings to Drive Housing Construction in Ottawa in 2014

OTTAWA, ONTARIO--(Marketwired - Nov. 7, 2013) - Ottawa's new housing construction will be driven by low-rise dwellings, according to Sandra Perez Torres, Canada Mortgage and Housing Corporation's (CMHC) Senior Market Analyst for Ottawa. CMHC presented its latest forecast for the Ottawa Census Metropolitan Area (CMA) today at the annual CMHC Housing Outlook Conference.
At this year's conference, entitled 'Profiling Ottawa's Echo Boomer', CMHC market analysts explained how the Echo Boomer demographic will influence homebuying trends in Ottawa and provided an in-depth housing market forecast for 2014.
"Ottawa's resale market will remain balanced while new construction will temper in 2014, as current apartment inventory gets absorbed. Employment growth will support the housing market, benefiting from numerous multimillion-dollar projects, including the LRT that will sustain the city's growth," said Sandra Perez Torres. "In the long-run, Ottawa's housing demand will be lead by Echo and Baby Boomers' preferences towards smaller dwellings. The other big influence in Ottawa housing demand, migration, will remain healthy, with some immigrant groups increasing their share of ownership demand as their income mimics Ottawa's average income," concluded Perez Torres.
Highlights from today's conference include:
  • Ottawa's diversified structure will provide stability as Public Administration employment returns to pre-recession levels.
  • Moderation in resale price increase will be influenced by preferences towards more affordable dwellings, as income will be growing at a slower pace.
  • Demographic, income and specific characteristics by submarket will create different opportunities, making housing market activity in some of these submarkets buck the general trend.
"Housing activity in Ontario will slow in 2013 then stabilize by 2014, thanks in large part to an improving Ontario economy, lower inventories of unsold homes and less out-migration to other provinces. Tight resale market conditions for single detached homes, active repeat buyers and improving income growth will allow demand for lower density homes to hold up better for most of 2014," said Ted Tsiakopoulos, CMHC`s Ontario Regional Economist.
As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

Ottawa Real Estate forecast article, click here

No comments:

Post a Comment