Multi-family apartment sales continue to face headwinds

Article content

September was a banner month for resale activity in the city’s housing market — except for multi-family apartments. The segment continued its long-running struggles last month, lagging behind other housing types in the city, recent numbers from the Calgary Real Estate Board show.

“One key reason is there is more competition from the new (multi-family) homes side,” says Ann-Marie Lurie, chief economist with CREB.

Additionally, inventory in the resale market also remained high relative to single-family detached, rows and semi-attached resales markets. That reflects growing demand for these segments at the expense of multi-family, she adds.

Consequently, apartment sales fell by one per cent last month compared with September last year. In contrast, other segments saw strong, double-digit percentage growth, led by row housing which increased by 48 per cent.

Calgary realtor Barb Richardson, senior vice-president at Sotheby’s International Realty Canada, says the lacklustre demand for multi-family reflects a growing preference among buyers for space.

View Source