Housing construction will be insufficient to meet needs over the next two years, according to forecasts from the Association of Construction and Housing Professionals of Quebec (APCHQ).
The APCHQ forecasts that there will be 44,000 housing starts in 2024 and 50,000 housing starts in 2025. Despite these respective increases of 13% and 14%, there will not be enough new housing to meet demand. .
“After experiencing, in 2023, the second most pronounced drop in housing starts since CMHC has been collecting this data, the weak anticipated recovery in residential construction in 2024-2025 will be clearly insufficient to meet the increase in demand” , underlines Paul Cardinal, director of the economic service at the APCHQ, in a press release.
The association estimates that around seven out of ten constructions in urban centers will be in the rental housing segment.
To make the market affordable, the APCHQ estimates that construction starts would need to be tripled until 2030.
After record renovation spending of $20.8 billion in 2022 in Quebec, preliminary estimates point to a decline of 23% in 2023. The APCHQ expects a recovery in 2024 and 2025 thanks to rates of lower interest.
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