In June, the Canada Mortgage and Housing Corporation (CMHC) reported a significant drop in the annual pace of housing starts, down by 9% from May. This decline is concerning for the housing market, as fewer new homes are being built. The decrease in housing starts indicates a slowing down in the construction of new homes across the country.
According to CMHC, the seasonally adjusted annual rate of housing starts was 248,138 units in June, compared to 273,841 units in May. This reduction is primarily due to fewer multi-unit urban starts, which include apartments and condominiums. The decline in these types of housing projects significantly impacted the overall numbers.
Economists note that several factors contribute to the drop in housing starts. High-interest rates and rising construction costs are making it more difficult for builders to start new projects. Additionally, the uncertainty in the housing market is causing some developers to hold off on new builds until conditions improve.
Despite the decrease in June, experts believe the housing market will stabilize in the coming months. The CMHC continues to monitor the situation closely, providing data and insights to help understand the trends and challenges in the housing sector.
Comments