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

Ontario, BC seeing steady multi-family demand amid COVID-19

Aerial view of a residential neighborhood - neighborhood stock videos & royalty-free footage.

Despite pandemic pressures, demand for multi-family assets continues to persist in Ontario and British Columbia, according to Canada Mortgage and Housing Corporation.

CMHC said that this helped compensate for the considerable slowdown in new home construction in March, which largely came about due to the economic impact of the COVID-19 pandemic.

Not taking into account Quebec, , the Canadian housing starts trend was 155,995 units during that month, up from 153,463 units in March.

CMHC data showed that Ontario represented the largest fraction of this volume with 93,628 starts in April, up by 42% month-over-month. BC came at a distant second with 27,767 starts, having fallen by 10% from March.

In stark contrast, Alberta’s rate of new home construction fell by 28%, although the province’s actual number of starts in April was at 23,262 units.

Still, the national starts trend could benefit from the current interest rate environment, at least for the time being.

Altus Group said recently that the Canadian central bank’s decision to cut short-term rates might prove a significant buffer against the worst effects of the coronavirus.

“The Bank of Canada [chopped] the target for the overnight rate by a cumulative full percentage point in one scheduled and one ‘emergency’ cut in less than 10 days. This has caused a drop in variable mortgage rates of about 70 basis points on average (for a 5-year term),” Altus Group said.

Post a Comment

Related Articles

The Bank of Canada’s latest decision to lower the overnight lending rate by 25 basis points from 3.25% to 3% is giving homeowners and prospective...

Building community resilience to adapt to a changing climate is essential for protecting both housing values and the broader community. In British Columbia, the provincial...

Most Trending News

The Bank of Canada’s latest decision to lower the overnight lending rate by 25 basis points from 3.25% to 3% is giving homeowners and prospective...

Building community resilience to adapt to a changing climate is essential for protecting both housing values and the broader community. In British Columbia, the provincial...

The federal government has decided to delay its planned increase in the capital gains tax inclusion rate, moving the date to January 1, 2026. The...