In its latest round of figure releases, the Canada Mortgage and Housing Corporation (CMHC) announced that the number of new housing starts across the country picked up pace last month, accompanying a wave of new condo construction in one of Canada’s hottest metropolitan markets.
“Overall, June saw housing starts pick up pace in Canada, bolstered by apartment construction in Ontario – especially new condo construction in Toronto’s downtown core,” CMHC Chief Economist Bob Dugan.
The seasonally adjusted annual rate (SAAR) of housing starts stood at 197,918 units on June 2016, up from 190,302 the previous month. In Toronto alone, housing starts trended at 40,861 units last month, far ahead of 37,377 in May.
All in all, housing starts growth was observed in Ontario, British Columbia, and the Prairies. However, Quebec and provinces facing the Atlantic saw numbers going on a downward slope.
“[Elsewhere] in the country, construction activity slowed as apartment construction eased in Quebec. Housing starts are also trending down in Alberta as a result of high inventories in the new and existing home markets of that province,” Dugan explained.
“As apartment construction picked up pace in June, so too did overall housing starts in Toronto,” CMHC Principal Market Analyst (Greater Toronto Area) Dana Senagama added. “New home starts also remain strong due to limited supply in the resale market, pushing buyers to purchase from the new market.”
High-rises have seen a renewed surge as buyers started looking for alternatives to the low-rise market, which has recently experienced bouts of record-low inventory.
Amid ever-intensifying demand and price growth, the pace of new construction in Vancouver and Toronto is not likely to stop any time soon, the CMHC concluded.