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Quebec residential construction in December another significant decline

Quebec residential construction in December another significant decline

According to results of the latest monthly survey conducted by Canada Mortgage and Housing Corporation (CMHC), residential construction declined in December. A total of 2,668 homes were started in urban centres of 10,000 inhabitants, which represents a 25 per cent drop from December 2006. The decrease brings total annual housing starts to 40,885, edging up by 4 per cent from 2006. "It was not conceivable that residential construction maintain the pace observed at the end of the summer. December's decline is thus in line with the trend of the past months," said Kevin J. Hughes, Senior Economist at CMHC.

Elsewhere in Canada, the provinces of Ontario (-23 per cent) and Alberta (-33 per cent) also recorded significant decreases. In this context, the national total regressed accordingly (11,176 compared to 14,019 in December 2006).

Single-detached housing starts were down by 3 per cent, for a total of 1,140 dwellings last December, compared to 1,175 during the same month of the previous year. This result masks regional contrasts between the Census Metropolitan Areas (CMA). In fact, the Montreal (-10 per cent) and Québec (-22 per cent) CMAs recorded notable losses, whereas elsewhere in Quebec, the remainder of CMAs posted major increases. In agglomerations of 50,000 to 99,999 inhabitants, housing starts in this category were less numerous (-19 per cent) compared to December 2006, especially, the Saint-Jean-sur Richelieu agglomeration (-49 per cent). Meanwhile, construction of this type was strong in smaller agglomerations (10,000 to 49,999 inhabitants), where a 20 per cent rise from the same period in 2006 was recorded.

The number of multi-family homes started in urban centres during the month of December of 2007 dropped considerably (-36 per cent) compared to December 2006. The Saguenay (-92 per cent) and Sherbrooke (-71 per cent) exhibited the most obvious declines. In agglomerations of 50,000 to 99,999 inhabitants, construction was down by 13 per cent compared to December of 2006, notably in Granby (-94 per cent). In smaller urban agglomerations (10,000 to 49,999 inhabitants), the picture is reversed, as multi-family housing starts climbed by 39 per cent during the last quarter compared to the same period in 2006.

"Even though multi-family housing starts were particularly volatile in 2007, the level, was again quite high, and reflects strong interest in the retirement home sector. Considering the rising trend in vacancy rates, the temporary slowdown of demand and high inventory of buildings under construction, it shall be all the more important for the industry to carefully monitor supply and demand conditions during the coming years" added Kevin J. 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 1-800-668-2642.

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Québec Landlords Association (1)

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