According to the results of the survey conducted in April by Canada Mortgage and Housing Corporation (CMHC), residential construction declined in Quebec this past month. With 3,983 dwellings started in urban centres with 10,000 or more inhabitants, the province registered a decrease of 25 per cent in relation to April 2005. Given its weight within the province, the Montréal census metropolitan area (CMA) had a major impact on the result.
In fact, the significant drop in new constructions recorded this past month in Montréal (-38 per cent) was reflected in the provincial results. "The construction of multiple housing units, particularly condominiums, experienced a real turnaround, especially in Montréal. As well, it must be kept in mind that the month of March had been exceptional for residential construction. The April results therefore seem to confirm the decline that we had forecast," indicated Kevin Hughes, Senior Economist at CMHC.
In the single-detached home category, Quebec registered a decrease of 7 per cent in April (1,924 starts, compared to 2,070 in April 2005). This result was due to the decline observed in the Montréal area, where foundations were laid for 1,086 single-detached houses, for a drop of 7 per cent. Gatineau (-25 per cent) and Trois-Rivières (-16 per cent) also sustained decreases, while the other CMAs posted gains.
As for multiple housing, April 2006 was a relatively weak month in the province's urban centres, as only 2,059 starts were enumerated, or 1,151 fewer than in April 2005. Again, Montréal was largely responsible for this result, as the number of multiple housing starts there fell by more than half in relation to April 2005 (1,014 units, compared to 2,224 in April 2005).
Other than Montréal, 2 other CMAs registered increases in this segment. In fact, multiple housing starts also fell in Québec (-32 per cent) and Sherbrooke (-44 per cent). Over the same period, the Saguenay and Trois-Rivières CMAs, as well as the Gatineau area, recorded increases in starts of this type, with a total of 248 units, compared to 65 during the same period in 2005. However, given the limited size of these markets, they had little impact, in comparison to Montréal.
"Despite the drop to 1,738 starts, the multiple housing segment remains very active. It goes without saying, that the significant number of units started in March 2006 led to a slowdown in construction in April needs to be accounted for," specified Mr. Hughes.
Overall, the 3,414 starts enumerated in the CMAs represent a decrease of 28 per cent in relation to April 2005. Conversely, in centres with 50,000 to 99,999 inhabitants, housing starts increased by 61 per cent in April (see table). "Last month's results paint a very uneven picture of the new home market from one area to another, which is quite normal at the beginning of a phase. A general trend should emerge by the second half of the year," added Mr. Hughes.
Year-to-date starts in urban centres have now reached 11,683 units, down by 6 per cent from the first four months of 2005. The decrease in the supply of new dwellings has been attributable to the slowdown in activity in the single-detached and multiple housing segment.
Canada Mortgage and Housing Corporation (CMHC) has been Canada's national housing agency for over 60 years. CMHC contributes to improving the living conditions and the well-being of Canadians through four areas of housing activities - housing finance, assisted housing, research and information transfer, and export promotion. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, and making vibrant and sustainable communities and cities a reality across the country. For more information, visit www.cmhc.ca or call 1-800-668-2642.
Housing starts back down in April
