Challenges and Opportunities in Canada Housing Market A Mid 2024 Update
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According to the Canada Mortgage and Housing Corp. (CMHC), construction of new homes in Canada’s six largest cities increased by four percent year-over-year in the first half of 2024, with a total of 68,639 units starting construction. However, this growth was insufficient to meet the rising demand, especially as major markets like Toronto and Vancouver experienced declines in housing starts ranging from 10 to 20 percent. Factors such as high costs, regulatory delays, and elevated interest rates contributed to the challenges faced in these markets, impacting the construction of condominium apartments.
While overall apartment construction saw a slight increase, driven by purpose-built rentals, condominium apartment starts fell in most cities due to soft demand and difficulties in achieving necessary pre-construction sales. In the Greater Toronto Area, high interest rates and a rise in new condo completions hindered sales from absorbing supply quickly. CMHC's deputy chief economist, Aled ab Iorwerth, expressed concern over the lagging housing system, emphasizing that it may take time for the situation to improve, particularly in Toronto.
Read the full article on: CBC
