Highlights from the Spring 2024 Housing Supply Report:
- Stability of overall housing starts: Combined housing starts in the 6 largest Canadian census metropolitan areas (CMAs) remained stable in 2023. We saw a 7% surge in apartment (purpose-built and condominium) construction but a 20% decline in single-detached starts.
- Regional variation: Housing starts trends varied by CMA. For example, Toronto, Vancouver and Calgary experienced record-high apartment construction, while Montréal faced an 8-year low in apartment starts.
- Rental construction reached new highs: Purpose-built rental construction hit record levels, reflecting unprecedented demand for rental housing. Despite the growth in purpose-built rental construction, supply has not kept pace with demand, evidenced by low vacancy rates and strong rent growth.
- Condominium boom: Condominium apartment starts also hit record levels, reflecting robust pre-sale activity and favourable borrowing rates secured before 2023.
- Decline in single-detached homes: The sharp drop in single-detached starts was the result of weaker demand for higher-priced homes in an elevated mortgage rate environment.
- Addressing supply challenges: Rising costs, larger project sizes and labour shortages have led to longer construction timelines. In response, various levels of government have launched or announced new programs to stimulate new rental housing supply.