Paul Martin's Business Update - October 9th, 2014

When long-term trends get established it is sometimes difficult to notice when they change. A good case in point is new home construction in this province.

Home building is one of those bellwether indicators that are followed closely by economists. It speaks to long-term confidence, purchasing power and so on.

And, in general terms, this sector has been strong for about a decade. Starts have been solid as 20,000 new residents arrive each year in the province which has created significant demand. Builders often found themselves scrambling to keep with that growth.

But now we’re seeing something different. This is especially true in Regina where new home starts have actually begun to decline. New figures from CMHC which look at the first three-quarters of the year show starts in Regina are down about 650 from this time last year. That’s roughly a 25-percent drop as construction appears to be catching up to population growth.

Saskatoon, on the other hand, is up about 250 units, in the neighborhood of 10 percent ahead of last year.

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