The latest survey conducted by Canada Mortgage and Housing Corporation (CMHC) revealed that residential construction slowed down in Quebec during the month of February. The total of 2,139 dwellings started in urban centres with 10,000 or more inhabitants represented a decrease of 10 per cent in relation to February 2005 (2,379 units). While activity declined in both major housing categories (single starts fell by 8 per cent and multiple starts, by 11 per cent), the regional picture showed varying results, with notable decreases for the Montréal and Québec areas and a significant increase for Gatineau. As for the results by tenure type, the February survey revealed that, in the census metropolitan areas (CMAs), freehold housing activity remained stable, while condominium (-20 per cent) and rental (-18 per cent) housing construction registered decreases. After two months, urban starts in Quebec reached 4,359 units, down by 5 per cent from the first two months of 2005.
"Despite the usual fluctuations at the beginning of the year (weather variations, gaps between permit registrations and starts), the results are revealing the outline of the picture that we anticipated for 2006, that is, a continued slowdown in residential construction in Quebec, for both the single- detached and multiple housing segments," indicated Kevin Hughes, Senior Economist at CMHC.
In February, Quebec urban centres recorded 763 single-detached home starts, for a decrease of 8 per cent from the same month last year. In this segment, the most notable regional result was the decline in the Montréal area, where the survey revealed that construction got under way on 461 houses of this type, representing a drop of 12 per cent in comparison with February 2005. Apart from a decrease of 7 per cent in the Québec area, the other CMAs all posted gains over February 2005 (see table). A similar decline was noted in centres with 50,000 to 99,999 inhabitants (-9 per cent), with a more significant decrease in the agglomeration of Saint-Jean-sur-Richelieu (-37 per cent) (see table). Given the stability observed in January, the results for the first two months of the year show that activity is down by 3 per cent in this segment at the provincial level.
In the multiple housing segment, the 1,376 starts enumerated in urban centres corresponded to a decrease of 11 per cent from February 2005. At the regional level, this result was attributable to a considerable drop in the Québec area. According to the survey, 341 multiple housing units were started there during an exceptional month of February 2005, compared to just 83 this past month. Otherwise, apart from a slight decrease for the Montréal area (-2 per cent), all the other CMAs posted increases (see table). The results of the February survey revealed a different picture for centres with 50,000 to 99,999 inhabitants. In fact, a generalized decline was observed in these agglomerations.
"A subset of the multiple housing segment that we don't often talk about, but that deserves our attention, is freehold multiple housing. This category typically comprises owner-occupied, semi-detached and row homes. For the CMAs, the January and February results show a non-negligible and opposite trend (with increases of 19 per cent and 34 per cent, respectively). We have observed a renewed popularity of these housing types in recent years, which has coincided with that of condominiums (also a form of multiple housing) and which shows a certain desire on the part of urban households to acquire or retain some form of property that is not a single-detached house. In some cases the key factor is price, whereas in others it is the preference for more manageable housing dimensions." added Mr. Hughes.
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.
Residential construction declines in Quebec in February
