More houses, fewer student apartments for Waterloo region: CMHC

Throughout 2016, the Waterloo region will see more single-detached houses being built, and slightly fewer apartments springing up than last year.

According to the Canada Mortgage and Housing Corporation, last year 995 semi-detached houses were built in the region, and this year they are expecting between 1000 and 1100 houses to be built. 

Erica McLerie, a Kitchener-Waterloo market analyst, said there are many factors contributing to the increase, including a strong demand for single-detached houses, combined with increasing incomes.

As well, many people are beginning to move from the GTA to the Waterloo region, where housing costs are lower.

McLerie said average home in Toronto costs upwards of $650,000, whereas a typical house in the Waterloo region costs less than $350,000.

No more student-housing needed

Although semi-detached house construction is on the rise, there will be slightly fewer apartments being built than last year, which is largely due to the amount of student housing that is already available.

Last year, there were 2217 new units created, while this year the CMHC expects between 1800 and 2000 units to be built, which includes apartments, townhouses and semi-detached homes.

McLerie said this is not a large decrease, but points out that apartment starts have been declining since 2014 when they reached their peak.

Throughout the last few years, a large portion of the apartments that were built were intended to accommodate students.

"It's reached the point where there is no room to build anymore and have them to be occupied," she said.

Even though apartment starts are technically decreasing, McLerie said there are still many apartments being built, especially in Kitchener around LRT stops.

"That type of condo will be increasing and will continue to increase," she said.

Kitchener-Waterloo housing in demand

Overall, housing in the area is in demand.

"A lot of people are attracted to the area, especially due to the high-tech sector," McLerie said. "Things are pretty good in K-W right now."

In addition to people moving from other areas, she said many immigrants who have been living in the region for a while are now looking to buy.

She says the number of sales in the region is increasing, which is an indication of a seller's market.