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7mo ago

Housing Starts Rise in Major Canadian Cities but Fail to Meet Demand

New home construction increases by 4% in the first half of 2024, driven by gains in Calgary, Edmonton, and Montreal, but supply remains insufficient.

The Canada Mortgage and Housing Corp. says construction of new homes in Canada's six largest cities rose four per cent year-over-year in the first half of 2024, but housing start levels were still not enough to meet growing demand. New home construction is seen in the Barrhaven neighbourhood of Ottawa on Friday, Aug. 30, 2024. THE CANADIAN PRESS/ Patrick Doyle
New homes are constructed in Ottawa on Monday, Aug. 14, 2023. The federal government is planning to launch a catalogue of pre-approved home designs to speed up the homebuilding process for developers.
A pedestrian stops to take photos of the Edmonton skyline, Dec. 24, 2023.

Overview

  • Canada's six largest cities saw a 4% year-over-year increase in housing starts during the first half of 2024, totaling 68,639 units.
  • Significant growth in Calgary, Edmonton, and Montreal contrasted with declines in Toronto, Vancouver, and Ottawa, where housing starts fell by 10-20%.
  • Apartment starts rose 2.5%, with nearly half of new units being purpose-built rentals, while condominium starts dropped due to soft demand and high pre-construction sales thresholds.
  • High interest rates and regulatory delays have impeded new constructions in Toronto and Vancouver, despite recent cuts to the Bank of Canada's key policy rate.
  • Changes to provincial and municipal zoning policies in British Columbia aim to increase density and future housing supply, potentially improving affordability.