According to the results of the survey conducted in June by Canada Mortgage and Housing Corporation (CMHC), residential construction declined again in Quebec this past month. In all, 3,138 dwellings were started in urban centres with 10,000 or more inhabitants, for a decrease of 11 per cent in relation to the result recorded in June 2005. This decline was observed for both major housing types (single-detached homes and multiple housing) and in most large urban centres across the province. “For June, the picture was in fact quite uniform. So far in 2006, residential construction has jumped up only when a multiple housing project has surfaced, as was the case in Sherbrooke this past month. Given the continued strong demand for this housing type, other cases like Sherbrooke should be expected,” indicated Kevin Hughes, Senior Economist at CMHC.
The strongest decrease was observed in the single-detached home segment, for which the province of Quebec registered a decline of 16 per cent in June (1,484 starts, compared to 1,759 in June 2005). While construction of this type of housing was on the rise in the Saguenay census metropolitan area (CMA), starts were less numerous in the other CMAs.
In urban agglomerations with 50,000 to 100,000 inhabitants, starts registered even more marked decreases (see table). “If there is one market segment that has been giving the same signal since January, it is single-detached housing. In addition to the repercussions of moderate economic conditions, the resale market is having an impact that is far from negligible. In fact, the rise in listings has incited many households to opt for the purchase of an existing home.
A less significant decrease (-6 per cent) was registered in the multiple housing category, where 1,654 starts were enumerated, in comparison with 1,761, in June 2005. The decline was less considerable in this segment on account of the increases observed in Sherbrooke (over 100 per cent), Saguenay (over 100 per cent) and Gatineau (39 per cent). As for the decreases, the Montréal area (-29 per cent) stood out. A slowdown was also noted in centres with 50,000 to 100,000 inhabitants (see table). Still in these agglomerations, decreases were noted in both rental and condominium housing starts.
Year-to-date starts in urban centres have now reached 18,669 units, down by 5 per cent in relation to the first half of 2005. The decline is being felt more in the single-detached home segment (-9 per cent) than in the multiple housing segment (-2 per cent).
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.