Trending
A red, white, and black flag with a white background.

Multi-family starts predominant in the hottest markets

A view of an apartment building with a green lawn and trees.

In recent months, more multi-family buildings were constructed than any other housing type in Canada’s hottest markets, according to a new report by the Canada Mortgage and Housing Corporation.

“The national trend in housing starts resumed its downward trajectory in February while still remaining above historical average,” CMHC chief economist Bob Dugan said.

The Crown corporation said that despite the nationwide housing starts trend falling to 203,554 units in February 2019 (from the 207,742 units exactly a year before), multi-family complexes represented much of recent home construction activity.

“Both single-detached and multi-unit dwellings starts trended lower. Higher mortgage rates combined with still-favourable, but less stimulative economic conditions have contributed to softer demand on new home markets in urban centres.”

Vancouver, in particular, saw the predominance of multi-unit buildings in new projects. Condo starts significantly increased in the 12 months ending February 2019, accounting for 77% of the city’s new housing units last month. In contrast, single-detached starts fell by 24% annually.

Read more:

Meanwhile, Toronto’s lower February numbers mainly stemmed from low condo apartment starts, although demand for the asset class is not stopping any time soon as “sales of new condominium apartment starts have been strong in 2017 and 2018 and these units will continue to break ground throughout this year at a varying pace.”

“Row and semi-detached home starts trended higher underlining their popularity among buyers looking for lower priced ground-oriented homes,” the CMHC noted

On the other hand, Montreal’s total housing starts decreased by 47% year-over-year in February, but “rental apartment construction has continued to show strong growth. The low vacancy rates, the aging of the population and the greater proportion of young households now opting for the rental market have continued to stimulate rental housing starts,” the CMHC stated.

About the Author

Ephraim is currently a journalist at Mortgage Broker News, Real Estate Professional and Canadian Real Estate Wealth. Ephraim is a highly accomplished news reporter whose work has been published across North America and the Asia Pacific region. Before joining Key Media, Ephraim spent eight years working as a journalist with Reuters TV. His areas of expertise include real estate, mortgage, and finance. LinkedIn | Email  

Post a Comment

Related Articles

In May, the housing inventory experienced a notable increase, continuing the upward trend from previous months, according to a recent Edge Realty Analytics report. Seasonally...

Insured and Uninsured Rates Fall Below 5% A June report from Edge Realty Analytics discusses the significant psychological impact of mortgage rates breaking above or...

Most Trending News

In May, the housing inventory experienced a notable increase, continuing the upward trend from previous months, according to a recent Edge Realty Analytics report. Seasonally...

Insured and Uninsured Rates Fall Below 5% A June report from Edge Realty Analytics discusses the significant psychological impact of mortgage rates breaking above or...

The Canada Mortgage and Housing Corporation (CMHC) has announced the reopening of the Housing Accelerator Fund (HAF) application window for previous applicants who were not...