For Calgary’s multi-family housing industry, 2009 will likely be a year in which developers clean up what’s on their plates before asking for a second helping, says a federal agency.

Canwest News ArchiveNew construction may not get off the ground until old projects finish up.

Coming off 2008, when construction started on 7,051 townhouses, apartments and duplexes — the highest total in more than 30 years — the forecast for this year is for about 1,700 units, says Canada Mortgage and Housing Corp.

The industry recognized the slowdown was coming partway through last year, when demand began to slow in the wake of rising prices and an escalation of available inventory in both the new and resale sectors, says senior market analyst Lai Sing Louie of CMHC.

“As a result, much of the multifamily construction activity in 2009 will focus on completing the multitude of projects that were started in 2007 and 2008, rather than initiating new construction,” he says.
In terms of total housing construction starts — both singleand multi-family homes — last month’s total of 243 made it the weakest January in 18 years.

In 1991, 158 single-detached homes and 12 multi-family units were started.

The various factors affecting the housing industry and the economy could mean some projects in Calgary’s inner-city Beltline area may never be built, says Paul Battistella, president of Battistella Developments.


The company is in the homestretch of its Colours by Battistella highrise at First Street and 15th Avenue S.W.