Quote:
Originally Posted by whatnext
This is exactly why none of these governmental loans to spur housing will work. The market won't build if conditions aren't favourable. That's why governments need to build it themselves.
CMHC reports annual pace of housing starts in January down 10% from December
OTTAWA — Canada Mortgage and Housing Corp. says the annual pace of housing starts in January fell 10 per cent compared with December.
Canadian Press
OTTAWA — Canada Mortgage and Housing Corp. says the annual pace of housing starts in January fell 10 per cent compared with December.
The national housing agency says the seasonally adjusted annual rate of housing starts came it at 223,589 units for the first month of the year compared with 248,968 for December 2023.
The decrease came as the annual pace of urban housing starts fell 11 per cent to 208,119 units, with the pace of multi-unit urban starts down 14 per cent at 164,789 units and single-detached urban starts up 0.08 per cent at 43,330 units.
The annual rate of housing starts in Toronto were up 179 per cent, boosted by an increase in multi-unit starts, however Montreal fell 28 per cent and Vancouver dropped 55 per cent due to drops in multi-unit starts....
https://www.biv.com/news/real-estate...cember-8310993
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I have no idea what the 'annual rate of housing starts' is when reporting a single month of housing development activity. But it presumably reflects mostly what happened in the previous 11 months, not the current month.
In CMAs in Canada (which is all CMHC report on a monthly basis) in January there were 12,037 starts last year, and 13,639 in January 2024. So housing starts last month were 13% higher than the same month last year.
It's a bit soon for the governmental loans for rental projects to show in the data, because CMHC only count a housing start when the project reaches grade, so many of the projects that the government has offered a grant won't count yet, but starts of rental housing in CMAs were 18% higher in January 2024 than in the same month in 2023.
This year there were 135,800 rental units under construction in CMAs in January, and in the same month last year there were 118,813, so 14% more were being built in January this year than last. Condo construction was also higher, with 165,011 being built, compared to 157,826 in January last year. Single family dwellings were down from 63,294 to 52,032 under construction. The government doesn't give loans to build those.