The Canada Mortgage and Housing Corporation (CMHC) reported a significant increase in the pace of housing starts in May 2023, with a 10% rise compared to April. This surge indicates a boost in construction activity, reflecting the ongoing efforts to address the country's housing supply challenges. Housing starts refer to the number of new residential construction projects that have begun during a specific period.
In urban areas, the seasonally adjusted annual rate of housing starts increased to 242,000 units in May from 221,000 units in April. This growth was driven primarily by a rise in multi-unit dwellings such as apartments and condominiums, which saw an increase of 18%. Single-detached urban starts also showed a modest increase, contributing to the overall positive trend.
Rural housing starts also saw a boost, adding to the overall national increase. The uptick in construction activity is a hopeful sign for prospective homebuyers and renters facing a tight housing market. It suggests that more housing options will become available, potentially easing some of the affordability pressures in major urban centers.
Experts believe that the increase in housing starts could help balance the housing market, although it will take time for these new units to be completed and available for occupancy. The CMHC's report highlights the importance of continued investment in housing construction to meet the growing demand and ensure long-term stability in the housing market.
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