Altus Feasibility Study (pdf) - Maison Senior Living

4904 ‐ 4920 Elbow Drive, Calgary, AB
Milliken Developments
October 28, 2010
Strong job growth since the second half of 2009 has resulted in Canada recouping nearly all of the jobs lost in the
recession. In the second quarter of 2010, employment was up about 1.0% from the previous quarter on a
seasonally adjusted basis. In addition, employment in the second quarter was nearly 293,000 jobs higher than the
same period in the previous year. The outlook is for employment to grow at an average annual pace of 1.6%
through the forecast period.
Housing starts remained a bright spot in the Canadian economy in the second quarter, rising to 202,400 units,
seasonally adjusted at annual rates. This marked the fourth straight quarter‐over‐quarter improvement. Overall,
housing starts were 4.9% higher than the previous quarter on a seasonally adjusted basis. However, these levels
are expected to moderate due to exhausted levels of pent‐up demand and the effects of pulled‐forward sales.
Existing home sales are also showing signs of softening. The Canadian Real Estate Association reported that the
number of homes sold in the second quarter declined by 13% on a seasonally adjusted basis, and average existing
home prices also moderated. Overall, despite improved employment conditions and the expectation that the
recovery has become more entrenched, the housing market is expected to recede from the frothy levels
experienced in the first half of 2010.
Activity in non‐residential construction spending (buildings and infrastructure) showed some encouraging signs of
improvement in the second quarter, led by investment in commercial and industrial buildings. Overall, spending
on non‐residential structures was 1.2% higher than the previous quarter on a seasonally adjusted basis. However,
levels still remained 3.8% below the same period in the previous year. Spending should continue to improve as
businesses resume spending and efforts to complete projects associated with government stimulus spending
continue. Also, with oil prices beginning to stabilize and uncertainty surrounding deep sea drilling, private sector
investment intentions for oil and gas investment in the Western provinces should improve.
All told, the economic recovery is becoming more entrenched, but there remain some headwinds to the recovery.
The significant amounts of public‐sector debt is now a concern for the euro area, and it will limit the potential
contribution of public sector stimulus going forward and has translated into higher taxes and interest rates.
Another major concern is lethargic job growth in the U.S. Sluggish employment growth has resulted in still‐
depressed consumer confidence and a housing market still struggling to gain a foothold.
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