After a boom in 2021, housing starts in the country’s six largest census metropolitan areas fell 5 per cent in the first half of 2022.
The 9 per cent decrease in apartment construction is the main cause of this drop. This according to the latest edition of Canada Mortgage and Housing Corporation’s (CMHC) Housing Supply Report, which examines new housing construction trends in the country’s six largest CMAs of Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montreal.
Gains in new housing construction in Toronto, Calgary and Edmonton were offset by declines in Vancouver, Montreal and Ottawa.
Regional highlights:
- In the Vancouver CMA, housing starts declined by about 25% in the first half of 2022. This slowdown was mainly due to a decrease in the number of condominium apartments started, owing to the greater number of rental apartments started. In a more uncertain economic environment for buyers, Vancouver’s low vacancy rate led residential property developers to turn to the rental segment.
- Housing starts for all dwelling types were down in the Montreal area. After a temporary rebound in activity at the beginning of the pandemic, driven by a change in preferences, the construction of houses declined sharply. After hitting historic levels last year, apartment starts also declined.
- Toronto had the highest number of housing starts in the first half of 2022 (19,520, up 7 per cent). While the construction of apartments and row houses increased in Toronto, the construction of generally less affordable housing types (single-detached and semi-detached houses) decreased.
- In Ottawa, housing starts declined for almost all dwelling types. The decrease was particularly significant in the single-detached and condominium apartment segments, where the level of construction was very high between January and June of 2021. Rental apartments, however, recorded an increase, with low vacancy rates stimulating construction.
- Both Calgary and Edmonton CMAs have seen housing starts increase by about 20 per cent since the beginning of the year. In Calgary, construction increased for all types of housing. Low stock and strong demand played a role in this expansion.
You can read the full Housing Supply Report here.
