In a report released by the CMHC, 169,000 more multi-res starts were reported in August than the month before.
According to CMHC’s deputy chief economist Mathieu Laberge, "The increase in housing starts in August was the result of a few, large, multi-unit projects in the Greater Toronto area."
Although condo starts are expected to taper off in coming months, the backlog of projects is expected to carry on through the rest of the year.
But single-family home construction saw no increase in August, with 64,300 units reported across the country.
Inna Breidburg, market analyst with CMHC's Ontario Business Centre, says that as a result, buyers in areas of the GTA are turning their attention to the resale market. "Construction is being held back by the limited amount of new homes available to buyers to build. Homebuyers in Durham Region are turning to the resale market for more options and lower prices," she explains.
The report also notes that the multi-family market may host a number of opportunities for investors. As the inventory is expected to climb gradually in 2013, low vacancy rates will propel the multi-family rental market upwards.
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