Stable Housing Demand in Waterloo Region Through 2016

KITCHENER, ONTARIO--(Marketwired - Nov. 25, 2014) - Waterloo Region has experienced a shift in the new home construction market from single-detached homes to apartments, and demographic changes will support this continuing trend according to Erica McLerie, Canada Mortgage and Housing Corporation's (CMHC) Senior Market Analyst for Waterloo Region. CMHC presented its latest forecast for the Waterloo Region Census Metropolitan Area (CMA) today at the annual CMHC Housing Outlook Seminar.

At this year's seminar, entitled 'What Will Drive the Market?', CMHC market analysts explained how demographic trends will impact the housing industry in Waterloo Region and provided an in-depth housing market forecast for 2015.

"Housing demand in 2015 will be supported by in-migration and job growth. In the longer term, as baby boomers age, the trend to smaller households will support the shift to higher density housing," said Erica McLerie.

Highlights from today's seminar include:

• The resale market will be balanced in 2015 with price growth slowing.
  
  
• Housing starts will decrease next year, due to lower apartment construction.
  
  
• Demand for apartments and townhouses will increase in the next few years.
  
  

"Growing economic momentum will support stronger activity in Ontario's housing market in 2015. However, as mortgage carrying costs continue to grow, due largely to rising home prices, demand will increasingly shift to more affordable housing by 2016," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "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," added Tsiakopoulos.

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