Residential Construction to Decline in New Brunswick in 2011

MONCTON, NEW BRUNSWICK--(Marketwire - May 30, 2011) - Total housing starts in New Brunswick are expected to decline in 2011 following last year's province wide increase, according to Canada Mortgage and Housing Corporation's (CMHC's) Housing Market Outlook released today.

"The robust residential construction activity observed in 2010, particularly the surge in multiple starts, is not expected to carry over into 2011, as lower demand in provincial urban centres will lead to reduced housing starts," said Claude Gautreau, CMHC's senior market analyst for New Brunswick. With limited economic growth, the provincial jobs market is expected to trend lower over the forecast period. Although the impact is expected to be moderate, reduced employment levels will be felt in the housing market over the forecast period.

In New Brunswick's three large urban areas – Saint John, Moncton and Fredericton – fewer residential starts are expected in both 2011 and 2012. However, the anticipated decline in housing starts will be moderate. The existing homes market is expected to follow the same general trend with reduced sales and limited price growth over the forecast period.

As Canada's national housing agency, CMHC draws on 65 years of experience to help Canadians access a variety of high quality, environmentally sustainable and affordable homes. 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.

For more information, visit www.cmhc.ca or call 1 800 668-2642.

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