DCN ARCHIVES

LATEST NEWS  Professional Services

July 13, 2007

Analyst predicts “precarious” future for Alberta's residential construction industry

EDMONTON

A senior real estate analyst says Alberta’s residential construction industry faces a “precarious” future due to high labour costs and ballooning prices.

Richard Goatcher, with the Canada Mortgage and Housing Corp., says high prices result in over-building, which results in prices going down.

Goatcher, whose agency insures mortgage lenders against default and tracks trends in the market, said competition from the commercial construction industry is keeping labour prices high even as the market for resale homes starts to level out.

But Goatcher says it’s not good for those seeking affordable housing because builders are flooding the market with condominiums, not rental units.

He says builders get large, short-term returns while rental units take longer to turn a profit. He noted high home prices have contributed to slowed migration to Alberta this year.

Yvonne Fritz, Alberta’s associate minister of affordable housing, says she’s heard nothing from the federal government about CMHC warning of pressures on the construction industry that might worsen problems.

Canadian Press

Print | Email | Comment

MOST POPULAR STORIES
TODAY’S TOP CONSTRUCTION PROJECTS

These projects have been selected from 313 projects with a total value of $3,164,198,755 that Reed Construction Data Building Reports reported on yesterday.

RAILWAY LINK

$400,000,000 Windsor ON Prebid

RETAIL DEVELOPMENT

$300,000,000 Toronto ON Negotiated

RESIDENTIAL, COMMERCIAL DEVELOPMENT

$250,000,000 Etobicoke ON Negotiated

Daily Top 10

CURRENT STORIES
ALEX’S ECONOMICS BLOG

Reed Construction Data Chief Economist Alex Carrick discusses current developments in the North American economic environment with emphasis on the construction industry.

TODAY’S TOP JOBS

More jobs 

myJobsite.ca

Your gateway to
the top careers
in construction
and design