WINNIPEG, our province and Canada all experienced significant increases in housing starts last month, a considerable improvement over January 2009.
According to preliminary data released by the Canadian Mortgage and Housing Corporation, Winnipeg increased from 128 starts last year to 248 this year. Although that represents a staggering 94 per cent increase, one needs to step back and realize that it's one month and 120 homes. However, you can't but feel optimistic at this point.
Provincially, we saw 263 starts last month as opposed to 140 in January, 2009, an increase of 88 per cent. This trend was evident right across the Prairies as Saskatchewan, Alberta and B.C. all had positive months. Overall, Canadian starts increased by 40 per cent in January.
Of course, some areas of the country were hit very hard in 2009 and this turnaround represents a long, slow climb back to acceptable levels. However, in Manitoba, this was not of the same scale. Our provincial starts for recession-filled 2009 ended at 4,174, up from earlier projections that could have had us fall below 4,000.
Excellent weather late into the fall and positive sales the last half of the year allowed us to exceed expectations. Although this number represented a noticeable decline from recent banner years, Manitobans did not experience nearly the economic impact of the massive declines in housing starts in Ontario, Alberta and B.C.
So, what do all of these statistics mean? First, it's just one month and typically a colder, slower month. The 'glass half-empty' crowd will take a wait-and-see approach and not read too much into the situation. They will point to an increase in the multi-family sector carrying the load. The 'glass half-full' crowd will rejoice at the good news, noting that the single-family detached sector is solid while the multi-family sector appears rejuvenated.
It may be just one month but, in any activity, a good start is important. The residential construction market is critical to Manitoba's economy and, hopefully, January is a sign of things to come.
No one is anticipating increases of this magnitude every month, but it certainly looks like Manitoba is once again taking the slow-but-sure approach to economic stability and prosperity.
Mike Moore is president of the Manitoba Home Builders' Association.
