According to the latest monthly starts survey conducted by Canada Mortgage and Housing Corporation (CMHC), residential construction slowed down this past month in centres with 10,000 or more inhabitants across Quebec. In total, 2,966 housing units were started in March. While this represents a two per cent increase compared to the same month a year ago, the monthly rate is considerably slower than that recorded in February.
As was the case in February, the dynamics were different depending on the centres. Starts rose by 8 per cent in the census metropolitan areas (CMAs) but fell by 68 per cent in the smaller agglomerations (50,000 to 99,999 inhabitants). Among the CMAs, the Gatineau area stood out with an 81 per cent hike. The Montréal (+7 per cent) and Sherbrooke (+55 per cent) areas also recorded increases. While activity was relatively stable in the Québec and Saguenay areas, the Trois-Rivières CMA posted a notable decline (50 housing starts compared to 98 in March 2007).
For a third straight month, multi-family housing starts were up significantly in Quebec urban centres. These starts grew by 30 per cent (2,129 in March 2008 compared to 1,638 in March 2007). "The strong growth of multi-family housing starts in March is attributable to strength of the rental (+48 per cent) and condominium (+49 per cent) market segments," said Kevin Hughes, Regional Economist at CMHC.
As well, multiple housing starts rose by 40 per cent across all CMAs. The Gatineau (more than 100 per cent), Montréal (+43 per cent) and Sherbrooke (+85 per cent) CMAs all posted significant increases, while the Trois-Rivières (-58 per cent) area recorded a considerable drop. The smaller agglomerations, for their part, registered a decrease of 72 per cent in multi-family housing starts.
The March survey revealed that single-detached housing starts declined by 34 per cent in March 2008 (837 new units, versus 1,265 a year earlier). This decrease is attributable to that observed in the Montréal CMA, where 521 such housing starts compared to 841 in March 2007. Starts of this type decreased in the majority of CMAs and in the smaller agglomerations (50,000 to 99,999 inhabitants). "The contrast between the pace of the single detached and multi-family market segments is similar to that observed on the resale market and reflects a continued trend of demand of more affordable and adapted housing" added Kevin Hughes.
Canada Mortgage and Housing Corporation (CMHC) has been Canada's national housing agency for more than 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, while making vibrant, healthy communities and cities a reality across the country. For more information, visit http://www.cmhc.ca/ or call