FOR IMMEDIATE RELEASE Kingston Starts Decline in the last

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FOR IMMEDIATE RELEASE


               Kingston Starts Decline in the last quarter of 2008


OTTAWA, January 9, 2009 – According to data released today by Canada Mortgage and
Housing Corporation (CMHC), housing starts in the Kingston Census Metropolitan Area
(CMA) declined in the fourth quarter of 2008. Total starts dropped to 189 units or 51 units
fewer than the level recorded in the same period in 2007. The weaker performance in the
fourth quarter brought the annual single starts to 546 units – a nine per cent decline from the
600 units registered last year.

Following an increase in the
third quarter, single-detached                                           Housing Starts Decline in Fourth Quarter
home starts declined by 43
per cent between October
and December of 2008.                                                  450
                                                                       400
                                     Kingston Single-Detached Starts




Despite this decline, the
                                                                       350
fourth quarter construction
                                                                       300
activity was still historically                                        250
                                                 (units)




high; when compared with                                               200
the same period in 2006, it                                            150
posted a 26 per cent                                                   100
increase.                                                               50
                                                                         0
                                                Q1       Q2        Q3        Q4
“The decrease in housing
                                  Source: CMHC         2006    2007     2008
starts this fourth quarter is
consistent with the long term
demographics of slower population,” noted Abdul Kargbo, Market Analyst at CMHC for
Kingston. “Given the decline in demand coupled with increased competition from high existing
home supply, new residential construction will decrease gradually from recent years’ strong
performance,” added Kargbo.

Semi-detached housing activity, on the contrary, was up, with 14 starts enumerated in the
fourth quarter – bringing the total number for 2008 to 48 units or 32 units higher than the level
recorded in 2007. “The increase reflects a shift in first-time home buyers’ demand away from
single-detached homes to less expensive town-homes and semis,” concluded Kargbo.
                                                             -2-


                                                     Housing Starts - Kingston CMA
                          Singles        Semi          Row          Apt.       Semi        Row         Apt.          Total
Fourth Quarter           2007     2008                 2007                                2008                    2007      2008 % Change

Kingston City            159        91          4            31          0            14          23          37    194      165   -14.9%
Frontenac Islands          1         2          0             0          0             0           0           0      1        2   100.0%
Loyalist                  23        11          2             0          0             0           0           0     25       11   -56.0%
South Frontenac           20        11          0             0          0             0           0           0     20       11   -45.0%
Kingston CMA             203       115          6            31          0            14          23          37    240      189   -21.3%

Year to Fourth Quarter

Kingston City            436       396          14           85       179             48          32          37    714      513   -28.2%
Frontenac Islands          6        12           0            0         0              0           0           0      6       12   100.0%
Loyalist                  60        66           2            0         0              0           9           0     62       75    21.0%
South Frontenac           98        72           0            0         0              0           0           0     98       72   -26.5%
Kingston CMA             600       546          16           85       179             48          41          37    880      672   -23.6%

                                                             -30-

As Canada’s national housing agency, CMHC draws on more than 60 years of experience to help
Canadians access a variety of quality, environmentally sustainable, and affordable homes ---homes
that will continue to create vibrant and healthy communities and cities across the country.
For more information, visit www.cmhc.ca or call 1-800-668-2642.




For additional information please contact:

Kingston: Abdul K. Kargbo, Market Analyst
Tel.: 613-748-5129; e-mail: akargbo@cmhc.ca

En Français: Sandra Perez Torres
Tel.:613-748-5120; e-mail: sperezto@cmhc.ca

Ontario: Ted Tsiakopoulos, Regional Economist
Tel.: 416-218-3407; e-mail: ttsiakop@cmhc.ca

Canada: Julie Girard
Tel.: 613-748-4684; cell: 613-295-6330; e-mail: jagirard@cmhc.ca