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, released by Canada Mortgage and Housing Corporation (CMHC), which examines new housing construction trends in Canada’s six largest census metropolitan areas.

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.

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