A new report from Scotiabank forecasts a slowdown in Canadian new home construction for 2014.

In the Global Real Estate Trends report, the projected decline is partially attributed to trends seen in 2013, including a rise in condominium inventories and weaker new condo sales.

The report states that “builders will likely further gear down the pace of new home construction” in the face of “waning investor interest in new condominium launches, higher unsold inventories and a softer pricing environment.” Analysts expect housing starts to reach approximately 175,000 in 2014, down 40,000 from 2012.

However, with many projects already underway, Scotiabank remains optimistic about multi-unit housing: “a historically high number of units under construction will maintain a high level of activity and employment in the sector.”

From a provincial standpoint, housing economists predict that Alberta will outperform the rest of the country as a result of strong employment opportunities, income gains and population growth.