According to the Canada Mortgage and Housing Corporation (CMHC), Waterloo’s new home construction market is shifting from single-detached homes to apartments. Moving forward, the CMHC says demographic changes will support this trend. The CMHC presented data to support this forecast at the annual CMHC Housing Outlook Seminar on November 25.
“Housing demand in 2015 will be supported by in-migration and job growth,” says Erica McLerie, CMHC’s Senior Market Analyst for the Waterloo Region. “In the longer term, as baby boomers age, the trend to smaller households will support the shift to higher density housing.”
Findings from the seminar included:
- A balanced resale market for 2015 with a decline in price growth;
- A decline in housing starts as a result of lower apartment construction; and
- An increase in demand for apartments and townhouses over the next several years.
“Growing economic momentum will support stronger activity in Ontario’s housing market in 2015,” says Ted Tsiakopoulos, CMHC’s Ontario Regional Economist. “However, as mortgage carrying costs continue to grow, due largely to rising home prices, demand will increasingly shift to more affordable housing by 2016. Resale markets surrounding the Greater Toronto Area, higher density dwellings and rental over ownership tenure will benefit most from the continued shift in buying patterns.”