“The increase in the trend reflects stronger starts activity since April, largely concentrated in multi-unit dwellings including condominiums,” said Bob Dugan, CMHC’s Chief Economist. “However, the currently elevated level of condominium units under construction supports our view that condominium starts should trend lower over the coming months.”
Multi-unit dwellings in urban areas account for 114,579 of the total.
The condo construction boom should come as no surprise, with Urbanation releasing impressive rental statistics in one of Canada’s hottest markets.
The number of condos rented through MLS reached record highs in the second quarter of this year, with 7,132 units being rented. That marks a ten per cent jump year-over-year.
“Rental activity is heading towards a more sustainable pace as demand levels-out following extremely high rates of growth in previous quarters,” Shaun Hildebrand, Urbanation’s senior vice president said in a release Friday. “With the fundamentals such as immigration, population and employment growth in Toronto recently slowing while condo completions move higher, rents can be expected to stay flat over the next year, although remain supported by still low rates of vacancy.”
Housing starts trend surged back to 197,747 in September, up from 191,095 in August.