(Ottawa) New home construction in Canada’s six largest cities remained virtually unchanged in 2023 compared to the previous year. It was stimulated by a record wave of new apartments in several regions, but not in Montreal which experienced its lowest level in eight years, according to the Canada Mortgage and Housing Corporation (CMHC).
Combined housing starts in the metropolitan areas of Toronto, Vancouver, Montreal, Calgary, Edmonton and Ottawa decreased by 0.5% compared to 2022, totaling 137,915 units.
Apartment starts rose 7% to a record 98,774 units, offsetting a decline in single-family home construction, the federal agency reports.
New single-family homes fell 20% year-on-year, due to weak demand for more expensive homes amid high mortgage rates.
CMHC says rising costs, project scale and labor shortages have led to longer construction times, prompting various levels of government in Canada to announce new programs aimed at boosting supply new rental housing.
Among the six cities examined, Vancouver, Calgary and Toronto saw growth in total housing starts, driven by new apartment construction (rental and condominium) reaching record highs.
However, Montreal, Ottawa and Edmonton recorded declines from the previous year. The CMHC report indicates that Montreal was the only market with a significant decrease in the number of construction starts in all types of housing.
The Quebec metropolis posted an overall decrease of 36.9%, totaling 15,235 units. The apartment sector alone recorded a decline of 34.9%.