Low oil prices affect new Calgary housing demand in 2015, says CMHC

The low price of oil continued to hammer away at Calgary's housing market with the latest stats showing demand was down in 2015, according to CMHC.

Housing starts trended downward in December, despite slight gain for single-detached homes

The decline in multi-family home construction in Calgary and the suburbs offset slight gains in single-detached starts in December, says CMHC. (CBC)

Low oil prices hit the housing construction market in Calgary in 2015, according to the latest numbers from the Canada Mortgage and Housing Corporation.

Fewer multi-family homes were built because of lower employment, people leaving the province and concerns about the economy, CMHC says.

"Total housing starts trended lower in December as the decline in multi-family construction offset the slight gain in single-detached starts," said Richard Cho, CMHC's principal of market analysis for Calgary.

"New home demand in 2015 has moderated as employment, migration and consumer confidence have been impacted by low oil prices," he said.

Housing starts in the city and surrounding area were trending at 12,716 units in December compared to 14,388 in November, CMHC said, in a release.

To the end of December, actual housing starts reached 13,033 compared to 17,131 during the same period in 2014, it says.

CMHC provides research and information on housing to governments, consumers and the housing industry.


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