Home building heats up

Home construction is heating up just in time for summer.

London's building sector got good news Friday, as single home starts climbed in the city and region.

In the important single-home starts category new construction climbed 10% in London and 12% in the region last month over May 2011, stated a release from Canada Mortgage Housing Corp.

"Recent gains in employment and a tightening in the resale market have turned more home buyers to the new home market," said Margot Stevenson, CMHC's senior market analyst.

"Single-family construction has picked up, but less apartment construction so far this year has brought the number of total starts down year-to date."

In the region work began on 155 single homes compared to 145 in May, 2011. In London there were 88 starts compared to 80 last May.

Year to date, the numbers were similar, with a 10% increase in London, from 320 starts to 352 from January to May, and in the region there was a 12% hike from 420 to 470, in the single home starts category.

A look at total starts, including semi-detached, row homes and apartments, showed only a slight increase last month over May, 2011, with a 1% increase in London and a seven per cent hike in the region.

Year to date, the decline was sharper for total buildings, with a 28% drop in the city, thanks to fewer apartment units being built and a 19% decline in the region.

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Home building heats up