Housing starts for detached homes are decreasing across Canada, while new condos are being built at a much faster pace than any other residential asset type.
The new Canada Mortgage and Housing Corporation (CMHC) report looks at nationwide housing start trends, providing information about which building types are rising or falling in popularity.
CMHC data for February 2019 Crown reported nationwide housing starts at 203,554 units, falling from the 207,742 units during the same month last year.
“Both single-detached and multi-unit dwellings starts trended lower. Higher mortgage rates combined with still-favourable, but less stimulative economic conditions have contributed to softer demand on new home markets in urban centres” CMHC chief economist Bob Dugan said.
The national trend in housing starts is slightly down in February while still remaining above historical average.
In Montreal, total housing starts fell by 47% annually last month. “Rental apartment construction has continued to show strong growth. The low vacancy rates, the aging of the population and the greater proportion of young households now opting for the rental market have continued to stimulate rental housing starts.”
Demand for rental apartment building is still showing no signs of stopping, as “sales of new condominium apartment starts have been strong in 2017 and 2018 and these units will continue to break ground throughout this year at a varying pace.”
In Vancouver, single-detached starts fell by 24% compared to February last year. Condo starts dramatically increased to account for 77% of all new housing units in the city last month.
Toronto, on the other hand, saw a higher prevalence of low condo apartment starts.
Row and semi-detached homes have also started to grow in popularity among buyers looking for family-sized properties at a more affordable price than detached homes.
This article, Rental Housing Condos Make Up Most Of Montreal’s New Housing Starts, appeared first on Shupilov News.