According to results of Canada Mortgage and Housing Corporation's (CMHC) latest survey, residential construction recorded a rise in August. In total, 3,011 dwellings were started in centres of 10,000 inhabitants and over. This represents a 6 per cent drop compared to the level recorded in August of 2005. Generally speaking, the rise was observed in the two main market segments (single-detached houses and multi-family dwellings) as well as in several of the province's larger urban centres. 'The fact that the August total is higher than that of the same month a year ago is mostly explained by the starts of several seniors residences. Had it not been for these new projects, the picture would have resembled that seen throughout the year, that is to say a decline in residential construction' said Kevin Hughes, regional economist at CMCH.
A 9 per cent increase in housing starts was observed in single detached market segment thanks to notable gains in the Gatineau (39 per cent), Montreal (22 per cent) and Quebec City (18 per cent) regions. Activity in these regions brought about a 19 per cent rise in centres of 100,000 inhabitants and over. As for agglomerations of 50,000 to 99,999 inhabitants, the total (88 housing starts) was rather stable when compared to the same month a year ago. This being said a significant increase in starts was observed in the St. Jean sur Richelieu (40 housing starts from 16 in August of 2005).
Meanwhile, a 5 per cent increase was recorded in the multi-family starts category where 2,034 starts were enumerated compared to 1,937 in August 2005. As was the case with the single-detached segment, this gain is attributable that occurring in centres of 100,000 inhabitants and over. In this category, activity in the Gatineau (193 starts compared to 66 in August 2005) and Trois-Rivières (55 starts compared to 2 in August 2005) was noteworthy. As for the Montreal region, a rise in rental housing construction took place while condominium starts dropped and produced a total (1,304) which was slightly higher than the August 2005 total. Elsewhere in the province, the survey reports drops in the Quebec City region (- 16 per cent) and the agglomeration of Granby (34 multi-family starts compared to 70 in August of 2005).
The year-to-date housing starts total in urban centres now stands at 24,376, for an 8 per cent decrease from the first eight months of 2005. The drop is present in both market segments ( - 9 per cent in single starts and - 7 per cent in multi-family construction). It remains noteworthy that despite the slowdown, only the Montreal (-15 per cent) and Quebec City (-11 per cent) CMAs are recording year-to-date decreases.
Canada Mortgage and Housing Corporation (CMHC) has been Canada's national housing agency for over 60 years. CMHC contributes to improving the living conditions and the well-being of Canadians through four areas of housing activities - housing finance, assisted housing, research and information transfer, and export promotion. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, and making vibrant and sustainable communities and cities a reality across the country. For more information, visit www.cmhc.ca or call 1 800 668-2642.