Residential
Housing investment is expected to reach $536.7 million in 2001. This consists of new housing (i.e., starts) and renovations. Most housing investment is targetted toward renovations, repairs and conversions (e.g., condominiums). This portion of the housing industry accounts for about 70% of total housing investment in the Province.

Housing starts through the first three quarters of 2001 totalled 1,323. This is 18% higher compared to the same period last year. Urban starts, which generally account for about two-thirds of total starts, grew by 6.6% and starts in rural regions grew by 42%. For the year, starts are expected to grow by 8.7% as gains moderate in the fourth quarter. If realized, this would be the best year in new home construction since 1997.

Non-residential
Private sector, non-residential construction spending is expected to be on par with 2000. Industries showing increased spending include retail trade, mining, and information and cultural services. These gains, however, were offset by lower Terra Nova investment and reduced spending in accommodations and food services industries.

Renovations over 70% of 
residential construction

Source: CMHC; Economics and Statistics Branch, Department of Finance

Photo courtesy of: Anthony Janes/City of Mount Pearl Construction of the Kent Home Improvement Warehouse in Mount Pearl

Public sector construction activity is expected to increase by $17 million in 2001. Transportation and public utility infrastructure spending will increase. This will more than offset the winding down of several large health care projects such as the new Janeway children’s hospital and renovations at the Health Sciences Centre.

Retail Trade Investment
Reflecting the growing consumption patterns of recent years, investment in retail trade is expected to more than double to over $36 million in 2001. Relative to 1997, investment has increased by 44%. These increases reflect higher consumer and business confidence and stem from strong sales growth and generally strong economic conditions. 

Over the past several years, retail trade investment has been increasingly targetted to new development areas such as Stavanger Drive (St. John’s), Lewin Parkway (Corner Brook) and Old Placentia Road (Mount Pearl). These areas are characterized by a large number of small to mid size stores clustered around larger (big box) stores. They differ from traditional mall settings in that they offer a larger selection and variety of products than normally found in malls (e.g., office supplies, building materials).