Housing starts down 25 per cent in 2023

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Ontario Construction Report staff writer

The number of new single-detached houses under construction in the first half of 2023 was down 25 per cent compared to last year.

According to data released last week by the Canada Mortgage and Housing Corporation (CMHC).9,523 new single-detached units under construction in the country’s six largest Census Metropolitan Areas (CMAs).

High interest rates, reduced access to credit and elevated construction and labour costs have created challenging conditions for homebuilders across the country, leading to fewer projects getting started and also an increase in construction timelines, which was up by 0.9 months, the agency said in a news release.

“Given larger building size and resulting longer preparation time of the buildings started in Toronto and Vancouver, the numbers posted in these cities are the result of a process that began at a time when financing and building conditions were considerably more favourable,” Kevin Hughes, Deputy Chief Economist for the CMHC, said in a release.

Toronto and Vancouver accounted for nearly two-thirds of the housing starts across the 6 markets, with apartment starts making up nearly three-quarters of all housing construction. The strong apartment growth observed in Toronto and Vancouver was offset by declines in Canada’s other largest centres.

Click the link to download the housing supply report (HSR) on the CMHC website.

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