2023-08-16 23:54:55
New construction continued to slide in July, adding even more heaviness to housing affordability.
The annual trend in housing starts in July fell 10% from June, according to the Canada Mortgage and Housing Corporation (CMHC). The seasonally adjusted and annualized monthly number of housing starts stood at 254,966 units in July, compared to 283,498 in June.
In urban centres, the annual pace fell by 11% in July, to 234,857, while the number of multi-family housing starts fell by 12% and that of single-family homes, by 4%. It fell 23% in Vancouver and 29% in Toronto. Conversely, it increased by 12% in Montreal, 33% in Calgary and 6% in Edmonton.
Monthly decrease in Quebec
For Quebec, the Association of Construction and Housing Professionals of Quebec (APCHQ) revealed that 2,784 homes had been started last month, a decrease of 36% compared to July 2022. This is the eleventh consecutive monthly decline and the thirteenth decline over the past fourteen months. »
Foundations were laid for 471 single-family homes last month, which represents a drop of 29%. The decline is a little more pronounced for collective housing, with 2,313 housing starts, a decrease of 38% compared to July 2022.
Unfortunately, with the recent rise in interest rates, housing starts will take even longer to emerge from their torpor.
The APCHQ specifies that it compares the actual data on housing starts for the current month with those for the same month of the previous year. For its part, the CMHC publishes seasonally adjusted and annualized data (SDA), which makes it possible to compare consecutive months. In this case, the number of housing starts in DDA in Quebec for the month of July rose to 30,002 compared to 25,551 in June. This is an increase of 17%.
“Unfortunately, with the recent rise in interest rates, housing starts will take even longer to emerge from their torpor. In particular, rental construction is currently anemic due to financing conditions, despite the fact that demand is strong in this segment”, indicates Paul Cardinal, director of the Economic Department of the APCHQ.
On a cumulative basis, Desjardins Group calculates that total housing starts are down 8.1% in Canada and 40.3% in Quebec if we compare the period of January-July 2023 to that of 2022. .
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