New home construction in the metro region was down last year by 17 per cent, according to the CMHC’s New Housing Construction Activity report.
That’s a greater drop than anticipated says Senior Analyst, Chris Janes.
He says they were expecting starts to be flat or slightly higher, which came as a surprise.
Janes says it appears to reflect a bit of a lag in consumer confidence despite good economic indicators.
He says consumers may not realize that the economy is doing better than some might believe. He says a dramatic decline in oil prices in the last quarter of 2018 may also be a factor in lower than anticipated new home construction during that same period.