OTTAWA, ON, March 27, 2024 /CNW/ - A surge in apartment construction, particularly in Toronto, Vancouver, and Calgary, more than offset declines in single-detached and semi-detached construction, causing the overall level of new home construction in Canada's six largest cities for 2023 to remain virtually unchanged from 2022. This according to the latest Housing Supply Report (HSR), released today by Canada Mortgage and Housing Corporation (CMHC), which examines new housing construction trends in Canada's six largest census metropolitan areas (CMAs).
Apartment construction, which includes both purpose-built rental and condominium apartments, reached record levels in Toronto, Vancouver, Calgary and Ottawa. Montréal, however, hit an 8-year low.
Purpose-built rental units accounted for a greater proportion of apartment starts in 2023, compared to historical averages, reflecting an unprecedented level of rental demand. Record condominium apartment starts reflected robust pre-sale activity and favourable borrowing rates secured before 2023.
The HSR also examines supply-side challenges, including high construction and financing costs, the complexity of developing larger projects and labour shortages. Construction timelines for all dwelling types were above historical averages in 2023, reflecting some of these challenges.
You can download and read the entire Housing Supply Report (HSR) on the CMHC website.
Single-Detached | Semi-Detached | Row | Apartment | Total | ||||||
Units | 2022-2023 | Units | 2022-2023 | Units | 2022-2023 | Units | 2022-2023 | Units | 2022-2023 | |
Vancouver | 2,832 | -16.5 % | 914 | -11.9 % | 1,922 | -15.1 % | 27,576 | 43.0 % | 33,244 | 27.9 % |
Calgary | 5,875 | 2.1 % | 1,674 | 7.3 % | 2,996 | 33.5 % | 9,034 | 16.6 % | 19,579 | 13.1 % |
Edmonton | 5,032 | -18.5 % | 948 | -0.8 % | 2,069 | 18.4 % | 5,135 | -10.1 % | 13,184 | -9.6 % |
Toronto | 4,721 | -25.4 % | 328 | -36.2 % | 4,860 | -14.0 % | 37,519 | 15.0 % | 47,428 | 5.1 % |
Ottawa | 1,535 | -44.9 % | 186 | -33.6 % | 1,678 | -37.6 % | 5,846 | 2.1 % | 9,245 | -19.5 % |
Montréal | 1,021 | -44.3 % | 208 | -59.5 % | 342 | -58.6 % | 13,664 | -34.9 % | 15,235 | -36.9 % |
Total | 21,016 | -20.0 % | 4,258 | -12.4 % | 13,867 | -10.1 % | 98,774 | 7.3 % | 137,915 | -0.5 % |
"There were a large number of housing starts in 2023, particularly in the rental segment, which is good progress, but not enough to improve affordability. The concern now shifts to whether construction of apartments will hold at these high levels in 2024. Clearly the demand for housing exists, particularly in rental, but financing costs could become too heavy for homebuilders to begin construction on large multi-family projects at the same pace seen in 2023."
- Aled ab Iorwerth, Deputy Chief Economist for the CMHC
View the related podcast with report author and CMHC Deputy Chief Economist, Aled ab Iorwerth on CMHC's YouTube channel.
Get the most up-to-date information on housing research by subscribing to CMHC's Housing Updates newsletter.
For more information, or to request interviews with CMHC experts:
Follow us on X (formerly Twitter), YouTube, LinkedIn, Facebook and Instagram.
SOURCE Canada Mortgage and Housing Corporation (CMHC)
These press releases may also interest you
|