Builders in the London area are ramping up to meet demand driven by smaller households.

More apartment units and row houses were built in the London area in 2015 compared with the previous year, Canada Mortgage and Housing Corp. said Monday.

CMHC market analyst Anthony Passarelli said the demand for new apartments is being driven by demographics.

“Empty-nest” baby boomers and young professionals are behind the growth of one- and two-person households, he said.

“New apartments are designed to suit the tastes of people aged 25 to 34 . . . or 55 years and older, as they head the majority of these smaller households.”

There were 2,105 housing starts in the London area last year, up from 1,983 in 2014.

The CMHC surveys London, St. Thomas, Strathroy and surrounding rural areas.

The 2015 total includes 595 apartment units, up from 473, and 440 row houses, compared with 372 in 2014.

The number of single-detached starts in 2015 was down slightly to 1,047 from 1,116 in the previous year.

The overall increase in housing starts is the latest positive news for the London area economy. Sales of existing homes were up almost 10 per cent in 2015. The number of people with jobs jumped by 9,300 over the past year, pushing the unemployment rate down to 6.2 per cent, below the national and provincial rates.

Peter Kokkoros, deputy chief building official for the city of London, said the number of building permits issued for single-family homes in the city was down slightly, reflecting the CMHC numbers for the wider London region.

Permits were issued for 1,290 housing units in 2015, down sharply from 2,051 in 2014, he said.

But Kokkoros said figures for 2015 are misleading because the department is processing applications for eight apartment projects with 1,344 units.

Permits for a 200-unit Tricar building at 505 Talbot St. and a 300-unit Medallion tower at King and Lyle streets will likely be issued in the next few weeks, he said.

“There’s a lot in the pot. I don’t know if they will all be built this year.”

Other residential towers in the works include:

a 17-storey, 219-unit condo tower on Richmond Street near the Western University campus

a 69-unit, six-storey mid-rise building at 356 Dundas St.

a 35-unit, six-storey building at Waterloo Street and Central Avenue

two six-storey apartment buildings and townhouses on Richmond Street North south of Hillview Boulevard

a 12-storey, 135-unit building on Pomeroy Lane near Southdale and Colonel Talbot roads

a 22-storey, 191-unit building at 96 Ridout St.

Jake Draper, president of the London Home Builders’ Association and director for contractor operations for Copps Buildall, said there seems to be confidence in the market, especially in the multi-family sector.

“We are really busy with drywall and steel which is predominantly going to highrise projects.”

Builders of single-family homes also report strong sales, indicating a good start for the this year’s construction season, he said.

There were 101 housing starts in the London area in December, up from 73 in the same month in 2014, CMHC said.

The total includes 85 single-detached starts, a big jump from 55 in December 2014, and 16 multi-family starts.

Across Canada, housing starts were down in December led by a steep plunge in the Toronto condo market,

BMO economist Robert Kavcic said the hot Toronto condo market was due for a correction.

“This is hardly bad news, and even a relief for policy makers after starts were running too hot for comfort earlier in the year.”

But overall, CMHC said the annual number of housing starts in Canada was 193,800 units, a slight increase over the last two years and in line with the long-term average.

London area housing starts

(2014 in brackets)

December starts

Single-family - 85 (55)

Semi/rowhouse - 7 (18)

Apartments - 9 (0)

Total - 101 (73)

2015

Single family - 1,047 (1,116)

Semi/rowhouse - 463 (394)

Apartment - 595 (473)

Total 2,105 (1,983)

(Canada Mortgage and Housing Corp.)

London area annual housing starts

2015 - 2,015

2014 - 1,983

2013 - 2,163

2012 - 2,240

2011 - 1,748

2010 - 2,079

2009 - 2,168

hank.daniszewski@sunmedia.ca

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