Builders are building cheaper condos, apartments and townhomes because that’s what the market is demanding. Solid well-built homes are no longer fashionable as buyers now desire homes made out of cardboard and duct tape. New material technology makes the leaky condo crisis a thing of the past as new homes can simply be wrung out by hand if they become too moist.
“Canada’s construction boom continued in July, but Canada Mortgage and Housing Corp. says it is seeing a swing away from single-family units towards cheaper condominiums, townhouses and apartments.”
Is that evidence of increased demand for this kind of dwelling or are the limits of affordability being reached? Ah! Here it we are, its a ‘growing interest in less expensive dwellings’:
“Strong multiple starts reflect a growing interest in relatively less expensive dwellings,” said Bob Dugan, chief economist at CMHC’s market analysis centre.
Single-family homes have been trending down for several months, reaching their lowest level of the year in July. It is a trend that Dugan expects will continue for the remainder of the year.
“Rising prices and slightly higher mortgage rates are expected to soften the demand for new homes in the second half of 2006,â€ he said.”