Contraction expected this year
BY MARIO TONEGUZZI MAY 24, 2011

CALGARY — After contracting this year, housing starts are forecast to bounce back in Calgary in 2012, says an Altus Group Housing Report.

The report by the economic consulting firm says total starts in Calgary for 2011 are expected to be 8,200 in 2011, falling from the 9,300 experienced in 2010. The forecast for 2012 is 9,700 housing starts.

A key factor is job growth. The report says job recovery bypassed Calgary last year “but so far in 2011 employment growth has shown sign of improvement” with forecast increases of 19,400 this year and 17,300 in 2012.

In Alberta, housing starts are forecast to drop to 25,261 this year from 27,088 in 2010. But the report forecasts starts to bounce back in 2012 to 27,625 units.