With a record-high number of apartments under construction in Canada, RBC noted in its latest Economics Canadian Housing Health Check report that the status of multi-residential projects under construction in Canada are “significantly outside historical norms.”
However, in the same report, RBC noted thats single-family and new home inventory for both multi- and single-family homes are “within historical norms.”
RBC economist Robert Hogue said that Canada’s increased levels of multi-residential homes that are currently under construction is not an indication of too many projects being build. “It’s a response to low inventories in most markets. Still, it entails some absorption risks.”
The report reveals that the majority of the buildings being constructed are located in Toronto (27%), Vancouver (17%) and Montreal (14%). The inventory of completed but unsold multi-unit homes has fallen to the lowest levels in over a decade.