Housing starts in Canada’s six largest census metropolitan areas (CMAs) totaled 68,639 units in the first half of this year, up by 4% from the 65,905 units in the same period during 2023, driven by significant increases in Calgary, Edmonton, and Montreal.
According to the latest Housing Supply Report by the Canada Mortgage and Housing Corporation (CMHC), the 49,172 apartment starts in the first half of 2024 accounted for 72% of all new home construction in the six CMAs. Construction of rental housing, supported by many government incentives and policies, made up the highest share of apartment starts on record (47%) and over one-third of total housing starts. Montreal recorded a 106% increase in rental construction, with 7,192 new rental units being started, the most out of the markets covered by the CMHC.
Calgary and Edmonton led the growth in housing starts, which reached the highest and second-highest level on record. Housing starts decreased in Toronto, Vancouver, and Ottawa.
The report also noted developers prioritized clearing backlogs of the record number of projects under construction during the year’s first six months, resulting in an increase in apartment completions across the six CMAs, with new records in each one except Montreal and Vancouver.
“The growth in actual starts observed in the first half of this year is encouraging, considering the tighter financing conditions and higher construction costs faced by homebuilders,” said Aled ab Iorwerth, deputy chief economist for the CMHC. “With record low vacancy rates in Canada’s largest cities, the increased investment by the private sector, leading to a rise in rental construction was much welcomed. However, per-capita housing starts remain a concern, as supply did not rise enough to keep pace with demand and improve overall affordability.”
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