Reconstruction has begun for a third of the city’s residential units destroyed in the blazes
Fresh data from the Canada Mortgage and Housing Corporation painted a positive picture of a Fort McMurray housing market in recovery, a year after the wildfires which set nearly 10 per cent of the city’s structures ablaze.
“A spike in housing starts in the first half of 2017 has supported the ongoing rebuilding efforts with construction started on one third of all destroyed units,” the CMHC stated in its newest Housing Market Insight report.
“Since the wildfires, one third of all destroyed residential units have begun reconstruction, representing 844 units. Only one per cent of units destroyed in the fire will not be rebuilt due to flood defense measures,” the report added.
“CMHC and the Regional Municipality of Wood Buffalo expect more units to start this year. At the current pace, all the rebuilding activity should take three to four years to complete.”
However, while this surge has generated some much-needed internal revenue, the CMHC cautioned that longer-term prospects for Fort McMurray’s economy remain uncertain.
“Unemployment is down, but still above levels seen prior to the steep drop in oil prices. The influence of weak oil prices is particularly evident in the resale market,” the report explained. “Resale market activity will likely remain low until energy markets stabilize.”
And while the inbound flow of skilled workers assisting with the Fort McMurray rebuild might lead to more of the city’s homes being occupied, “vacancy rates will likely remain elevated compared to pre-2014 levels.”
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“A spike in housing starts in the first half of 2017 has supported the ongoing rebuilding efforts with construction started on one third of all destroyed units,” the CMHC stated in its newest Housing Market Insight report.
“Since the wildfires, one third of all destroyed residential units have begun reconstruction, representing 844 units. Only one per cent of units destroyed in the fire will not be rebuilt due to flood defense measures,” the report added.
“CMHC and the Regional Municipality of Wood Buffalo expect more units to start this year. At the current pace, all the rebuilding activity should take three to four years to complete.”
However, while this surge has generated some much-needed internal revenue, the CMHC cautioned that longer-term prospects for Fort McMurray’s economy remain uncertain.
“Unemployment is down, but still above levels seen prior to the steep drop in oil prices. The influence of weak oil prices is particularly evident in the resale market,” the report explained. “Resale market activity will likely remain low until energy markets stabilize.”
And while the inbound flow of skilled workers assisting with the Fort McMurray rebuild might lead to more of the city’s homes being occupied, “vacancy rates will likely remain elevated compared to pre-2014 levels.”
Related stories:
Jobs slump hurting Alberta real estate market’s prospects
