Strong Economy Leading to Building Boom

Nova Scotia's growing economy is fueling the strongest housing boom the province has seen in more than a decade. Finance Minister Neil LeBlanc spoke about Nova Scotia's economic performance at the Nova Scotia Home Builders Association's monthly meeting today, Sept. 10.

In the first six months of 2002, Nova Scotia housing starts increased 26.6 per cent over the same period in 2001. This compares to a 22.2 per cent on the national scene. Nova Scotia home builders are in step with the strong activity in the national housing market as builders enjoy their busiest time since the late 1980s.

"Nova Scotia is experiencing stronger-than-anticipated growth this year," said Mr. LeBlanc. "And the outlook for the next fiscal year is even brighter. That year, the economy is expected to grow by 3.7 per cent." He added that confidence in Nova Scotia's economic stability, along with stable interest rates, are leading to the housing boom.

Statistics Canada also recently reported that Nova Scotia residential construction investment (new housing, renovations and acquisition costs) increased almost 25 per cent in the second quarter of this year, as compared to last year. The national increase was 18 per cent. This investment translates to more than $345 million in the Nova Scotia economy in the second quarter.

In July 2002, the value of building permits in Nova Scotia (seasonally adjusted) increased 5.5 per cent to $90.7 million over June 2002 and increased 26.9 per cent to $518.4 million over Jan.-July 2001.

Further evidence of the strong economy came from Statistics Canada Monday, Sept. 9, as Nova Scotia ranked number one in growth rate of department store sales. Year-to-date sales increased 15.2 per cent to $312.8 million over Jan.-July 2001.