New Housing starts were up in 2024 by 2%, not near enough to meet the demand.
Overview of 2024 Housing Starts
Canada Mortgage and Housing Corp. (CMHC) reported a 2% increase in Canada housing starts in 2024, reaching 245,120 units, up from 240,267 in 2023. This growth came from higher activity in Alberta, Quebec, and the Atlantic provinces, contributing to the overall Canada housing starts 2024 increase.
Regional Trends in Housing Starts
However, housing starts in Canada’s six largest census metropolitan areas dropped by 3%. Vancouver, Toronto, and Ottawa saw declines, while Calgary, Edmonton, and Montreal experienced increases. This regional contrast reflects a broader 2024 increase in Canada housing starts.
CMHC’s Outlook on Housing Supply and Affordability
“Housing starts in urban centres rose in 2024, marking the third-highest year on record,” said CMHC chief economist Mathieu Laberge. “Despite this, urban areas need significantly more housing supply to restore affordability.”
Projected Housing Supply Needs
CMHC estimates that Canada must build 3.5 million additional housing units by 2030 to reach 2004 affordability levels. This goal adds to the 2.3 million units already planned. The agency also projected that Canada’s construction capacity could support up to 400,000 new units annually, aligning with the 2024 increase in housing starts across the country.
Regional Slowdowns and National Impact
TD economist Marc Ercolao highlighted that Ontario’s slowdown contrasts with national trends. “Ontario’s housing starts are declining due to weak condo demand, which may lead to a national pullback in 2025,” he said. Slower population growth in Ontario is also contributing to this shift.
December Housing Starts: A Closer Look
The year ended with a 13% drop in the seasonally adjusted annual rate of housing starts in December, falling to 231,468 units from 267,140 in November. CIBC economist Katherine Judge called this decline significant, though she noted that fourth-quarter housing starts rose 4% compared to the third quarter. Judge expects construction activity to recover as interest rates drop but warned that weak condo pre-sales will limit growth.
Conclusion: The Need for Continued Growth
This regional and national activity highlights the Canada housing starts 2024 increase, emphasizing the need for continued efforts to address affordability challenges and meet growing demand across provinces.
 | ReplyForwardAdd reaction |
