The Canadian Mortgage and Housing Corporation has released its yearly report on housing starts.
According to the CMHA, in Vernon, there were almost 450 housing starts in 2018, up about 12 per cent from the year before, with construction of rental apartments leading the way.
In Penticton, the CMHC says housing starts were up almost 8 per cent in 2018, to over 600.
“One of the big factors that we saw that drove those housing starts was the multiple unit side, similar to Vernon, where it was about an even split between apartment condos and apartment rentals that got underway,” said CMHC senior analyst Taylor Pardy.
In Kelowna, CMHC is reporting a 29 per cent drop in housing starts in 2018, compared to what it called a record year in 2017. From 3,577 starts in 2017 to 2,555 in 2018.
But according to the City of Kelowna’s development services, the truth is in the way you read the numbers.
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“Actually, I would say the banner year for housing starts in Kelowna was 2018 rather than 2017,” said Mo Bayat with the City of Kelowna.
Bayat said the city tallies residential building permits issued to calculate its numbers.
“Our stats show based on the building permits issued, 2,639 units in 2018 versus 2,530 in 2017,” Bayat said. “That translates to a four per cent increase in the number of units.”
But what both the CMHC and the city of Kelowna agree on is that a market correction is on the way.
The CMHC analyst is predicting a moderation of both the housing sales and starts in the next year or two.
The City of Kelowna is predicting some correction by 2020 or 2021.