Housing investment totalled $543 million in 2001, up 5.4% from 2000. Of this total, about 70% or $380 million was targetted for renovations and conversions while the remaining 30% was spent on new home construction.
Housing starts grew by 22.5% in 2001 to 1,788 units. This was the highest number of starts since 1996 and was driven by higher employment, income growth, increased consumer and business confidence, and the lowest short-term mortgage rates in 40 years. Starts in the St. John’s area, which account for 58% of the provincial total, grew by 10% to 1,029 in 2001. Housing starts in other large centres (Gander, Grand Falls-Windsor, Corner Brook, and Labrador West) grew by 61% to 151 in 2001, and starts in remaining areas increased by 41% to 608.
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Total construction investment is expected to be $2.17 billion, down about 7% from 2001. Decreased construction spending reflects, in part, the conclusion of Terra Nova development.
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Pending project sanction, White Rose construction is expected to begin in 2002.
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Housing investment is expected to grow by 3.4% and housing starts are expected to increase by 4.3%.
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Inventory of major capital projects. |
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Non-residential construction investment in 2001 declined by 11.5% to $1.52 billion resulting from reduced investment in public administration and the winding up of Terra Nova development. As in recent years, the oil and gas industry accounted for over one-third of total investment. Strong growth was noted in the utilities and trade industries. Retail trade capacity, in particular, has expanded with the construction of major retail infrastructure in St. John’s, Mount Pearl and Corner Brook.
There were 1,845 construction firms registered in the province in 2000, up about 2% from the previous year. Of these, about 50% are located on the Avalon Peninsula. |
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| Community |
2001
$ Million |
% Change
From 2000 |
| St. John’s |
103.9 |
-2% |
| Mount Pearl |
33.6 |
68% |
| Paradise |
32.2 |
3% |
| Conception Bay South |
25.7 |
76% |
| Corner Brook |
23.4 |
71% |
| Grand Falls-Windsor |
14.4 |
-1% |
| Gander |
10.5 |
-63% |
| Happy Valley-Goose Bay |
4.8 |
3% |
| Labrador City |
2.2 |
6% |
| Total |
250.7 |
7% |
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Source: Municipal Records; Economics and Statistics Branch, Department of Finance |
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