The amount of new homes being developed has decreased as the restricted housing availability continues to drive up real estate prices across Canada.
According to a new report from the Canada Mortgage and Housing Corporation (CMHC), the number of new homes under construction in October was down significantly from the previous month across the country. The six-month average of new units starting construction in September was 270,661. It fell to 264,264 in October.
“The six-month trend in housing starts declined from September to October, as the retreat in total starts from their earlier 2021 levels continued,” said Bob Dugan, CMHC’s chief economist. “For [seasonally adjusted annual rate] housing starts in Canada’s urban areas, a slight increase in single-detached starts didn’t offset a larger decrease in multi-family starts in October and led to a decline in overall starts for the month.”
Notwithstanding this decrease, Dugan adds that the number of home developments in Canada is still at an all-time high. In reality, from October 2020 to October 2020, housing development increased by 4% across the country. In October, new home development in Vancouver increased by 39 percent year over year, making it one of the most substantial increases in the country. Calgary is up 28%, Montreal is up 15%, while Toronto, oddly, is down 12% year over year.
The most significant change occurred in Ontario’s Kitchener-Cambridge-Waterloo region, which saw a 143 percent increase in house starts year over year. During the epidemic, the Kitchener region became increasingly popular, with rent costs jumping as many renters departed.