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CMHC Reports 2% Rise in 2024 Housing Starts, Led by Alberta, Quebec, and Atlantic Canada

Jan 16th: The Canada Mortgage and Housing Corporation (CMHC) reports that housing starts across the country increased by 2% in 2024, reaching a total of 245,120 units compared to 240,267 in 2023. The growth was fueled by a rise in new construction in Alberta, Quebec, and the Atlantic provinces.

However, the six largest metropolitan areas in Canada collectively experienced a 3% decline in housing starts, with Vancouver, Toronto, and Ottawa recording decreases. On the other hand, Calgary, Edmonton, and Montreal showed gains.

“Urban centres saw notable progress in 2024, with housing starts marking the third-highest year on record,” said CMHC chief economist Mathieu Laberge. Despite this, Laberge emphasized that much more housing is needed to address affordability challenges in cities.

To restore affordability levels seen in 2004, CMHC estimates that Canada needs an additional 3.5 million housing units by 2030, beyond the 2.3 million units already expected to be built. The agency has suggested that up to 400,000 new housing units could be constructed annually if sufficient resources are allocated to residential construction.

Regional Trends and Challenges

TD economist Marc Ercolao highlighted a growing divide between Ontario and other parts of the country. He noted that while housing starts remain strong nationwide, Ontario is seeing a decline, especially in condominium construction due to weaker demand. This trend, coupled with slower population growth, could lead to further decreases in Canadian housing starts in 2025.

In December 2024, housing starts nationwide saw a sharp drop, falling 13% to a seasonally adjusted annual rate of 231,468 units, down from 267,140 units in November. The decline included a 14% drop in urban housing starts, with multi-unit projects like condos and townhouses falling 15% and single-detached homes dropping 10%. Rural housing starts reached a rate of 17,468 units for the month.

CIBC economist Katherine Judge called the December decline “sharp” but noted it followed strong gains in October and November, keeping the fourth quarter’s pace of construction 4% higher than the third quarter. She anticipates building activity will improve as interest rates fall, though growth may be limited by weak condo pre-sales.

The CMHC remains focused on addressing the country’s housing needs as affordability challenges persist, especially in urban areas.

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