January 11, 2016 -Housing starts of single family homes have been at a "historic low" in 2015, confirms Canada Mortgage and Housing Corporation (CMHC). This statement concerns all major urban centers of Quebec.
The annual results of housing starts in 2015 (33 029) are essentially the same as in 2014, but the numbers for collective dwellings built were up, while starts of single-family homes were down again this year.
"Understanding the plummeting market for new single family homes is understanding the rise of the market for apartments. In Québec, for more than ten years, the progressive aging of the population, urban densification strategies and the search for affordable housing have supported the demand for and a growing supply of apartments, "says Kevin Hughes, Senior Economist at CMHC for Quebec.
Condominiums, senior’s residences or traditional rental dwellings have overtaken the single-family home market. Save for an exceptional situation, "a reversal seems unlikely," said Kevin Hughes, Senior Economist at CMHC for Quebec.
Greater Montreal is particularly affected by this new trend, as housing starts were supported in 2015, by the start-up of rental complexes. In this market segment, the compilation of housing starts for last year increased by about 80% compared to 2014.
Seniors' residences and traditional rental units are the main reason for this prodigious jump in housing starts. The pronounced slowdown in condominium construction, combined with a relatively low vacancy rate in recently built rental units , have enticed many developers to focus on the traditional rental housing segment" , concludes David L'Heureux, Chief Analyst, Market Analysis with CMHC in Montreal.
Montreal, January 11, 2016
