Costs have skyrocketed in the construction sector, to the point where many residential sites will have to be put on ice.
A slowdown has been observed in the housing market since last spring.
“We really see a rate that is decreasing almost everywhere in Quebec, we can anticipate that it will also continue over the coming months,” explained to TVA Nouvelles the economist of the Canada Mortgage and Housing Corporation, Francis Cortellino. .
In 2021, there were 68,000 housing starts across the province. In 2022, 10,000 fewer have been registered and this year, the Mouvement Desjardins expects 47,000.
“For the moment, the projects are in progress. They are being done, but what will happen in the future, for the moment, in any case, myself as a small promoter and the people I know, they put all their projects on “hold””, indicates the president-director. General of Construction Tomico, Thomas Smeesters.
Like many entrepreneurs, he put projects on hold.
“When your project is no longer profitable, your construction costs have exploded, well, the person at some point, following a rate increase, we continue, second… we ask ourselves the question and the third increase, well there, the project no longer makes sense”, maintains Mr. Smeesters.
In the midst of the housing crisis, with only 1.7% of vacant units in Quebec, this slowdown is a bad omen.
“We recently released a study in which we practically demonstrated that the pace of housing starts in Quebec would have to be doubled to regain affordability. So, it is certain, when housing starts decrease, we go in the other direction, which is not good news, ”explains Francis Cortellino.
The renovation market will not escape this. Usually, because the housing stock grows and ages, there is a slight increase in renovations each year. But in 2023, experts expect a decrease of at least 15%.
“The indicators currently give us the effect that there would potentially be a decrease in the renovation sector rather towards the end of the year,” proclaims the spokesperson for the Association de la construction du Québec, Guillaume Houle.
Nevertheless, one of the positive aspects of this slowdown is that customers will find it easier to find a contractor to carry out their renovations.
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