After a boom recorded in 2021, housing starts in the country’s six largest census metropolitan areas (CMAs) fell 5% in the first half of 2022. The decrease in apartment construction (-9%) is the main cause of this drop. This according to the latest edition of Canada Mortgage and Housing Corporation’s (CMHC) Housing Supply Report, which examines new housing construction trends in Canada’s six largest CMAs of Vancouver, Calgary, Edmonton, Toronto, Ottawa and Montréal.
Gains in new housing construction in Toronto, Calgary and Edmonton, were offset by declines in Vancouver, Montreal and Ottawa.
“In the first half of 2022, housing starts were mixed across Canada’s largest urban centres. Rental construction was generally resilient, due to strong demand for this type of housing, while developers took a more cautious approach to starting new condominium apartment projects, due to the higher interest-rate environment,” said Francis Cortellino and Eric Bond, Senior Specialists for housing market analysis for CMHC. “Increases in construction costs and materials shortages were also felt across markets, impacting construction times and the affordability of the housing delivered.”
Along with reporting on the latest trends in new home construction, this edition of the Housing Supply Report also examines the evolution of construction costs and construction time for different dwelling types in Canada’s six largest urban centres.