The latest data from the Canada Mortgage and Housing Corporation (CMHC) indicates that Canada saw housing starts decline in 2023, despite mass immigration.
Overall, there was a noticeable decline in the number of new housing projects across urban areas with populations exceeding 10,000. This reduction amounted to a 7% decrease in housing starts, totaling 223,513 units, a drop from the 240,590 units seen in the previous year. The primary factor behind this decrease was a significant 25% fall in the construction of single-detached homes.
However, this trend of decline was not uniformly observed across all regions. In major urban centers like Toronto and Vancouver, the situation was quite different. Toronto witnessed a 5% increase in housing starts, while Vancouver experienced an even more substantial 28% rise. In stark contrast, Montreal’s housing market faced a downturn, with a 37% reduction in housing starts, affecting both single-detached and multi-unit dwellings.
Looking at the broader trend, the six-month average of housing starts in December showed a marginal decrease of 2.1% from November. Yet, on a month-to-month basis, there was an 18% increase in the seasonally adjusted annual rate of total housing starts across Canada in December.
Information for this briefing was found via CMHC and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
