The results of the latest monthly starts survey conducted by Canada Mortgage and Housing Corporation (CMHC) revealed that residential construction in Quebec declined by 12 per cent in March. In all, 2,903 housing units were started in urban centres with 10,000 or more inhabitants. The decrease in activity affected the multi-family housing market segment and was observed notably in the Montréal area (-20 per cent).
"Exceptionally, the month of March stood out with vigorous single-detached housing activity since, as we have reiterated, demand for homes of this type has reacted more significantly to the moderate economic growth and the easing of the resale market. Considering the recent market conditions, we anticipate that construction in this market segment will return to the levels recorded in previous months. As for multiple housing, the decline in starts was not surprising, given the current significant inventory," said Kevin Hughes, Provincial Economist at CMHC.
Urban multi-family (semi-detached, row and apartment) housing starts fell by 23 per cent, in comparison with the same month last year (1,638 units, versus 2,130 in March 2006). That being said, only the Montréal area registered a decrease in activity. Among the other results, it should be noted that construction rose by close to 70 per cent in the Trois-Rivières area (81 starts, versus 48 in March 2006) (see table). For the first quarter, multiple housing starts are down by 7 per cent, compared to the same quarter in 2006.
Still according to the monthly survey, foundations were laid for 1,265 single-detached houses in Quebec in March 2007, compared to 1,179 during the same period the year before, for an increase of 7 per cent. All metropolitan areas, with the exception of Gatineau (-19 per cent), registered gains in starts in this market segment. For the first quarter, single-detached home starts are down by 8 per cent in Quebec's urban centres.
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 www.cmhc.ca or call