Housing starts are recovering from the pandemic

Les mises en chantier récupèrent de la pandémie

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In all regions of Canada, the number of monthly seasonally-adjusted and annualized rate of housing starts increased from 195 453 in may to 211 681 in June, an increase of 8.3%.

The residential construction market is gradually recovering from the effects of the pandemic. The data do however reflect the state of economic health become more precarious.

In all regions of Canada, the number of monthly seasonally-adjusted and annualized rate of housing starts increased from 195 453 in may to 211 681 in June, an increase of 8.3 %. For its part, the national trend of housing starts rose in June, for a total of 199 655 compared to 197 063 in the previous month. In the urban centres, the increase was 8.7 % with a 13% increase in the segment of collective housing units, offsetting a decrease of 4.5% in individual houses.

Despite the upheaval caused by the pandemic and the means to contain it, the residential construction is experiencing a good recovery in Canada and in several regions of the country

— Hélène Bégin

 

The measured increase is explained by the increase in housing starts of multifamily housing in Toronto and Montreal, following declines in these metropolitan centres over the last few months due to measures related to the COVID-19. The housing starts continued to decline in most other urban centres in June, including Vancouver, ” says the canada mortgage and housing corporation (CMHC).

Across quebec, housing starts totalled $ 5883 housing units, an increase of 12 % compared to June 2019. This increase is due to the 27 % recorded in may, which marked a restart of yards after the forced break (from 24 march to 19 April), said the Association of professional construction and housing of Quebec (APCHQ). The combination of the first six months, the delay is of 7 % compared to last year.

“The evolution of housing starts over a period of twelve months gives a better idea of the overall trend. Thus, from July 2019 to June 2020, the 42 138 housing starts enumerated in the province do not suggest that a slight decrease of 1 % compared to the previous period of twelve months, and this, in spite of the lack of activity last April “, has highlighted the APCHQ.

Hélène Bégin, senior economist at Desjardins group, agrees. “In Montréal and in Québec as a whole, the recovery was rapid thereafter […] Despite the upheaval caused by the pandemic and the means to contain it, the residential construction is experiencing a good recovery in Canada and in several regions of the country. The rebound was particularly strong in Quebec and in Ontario, that have been strongly shaken by the measures of distance physical. “

For the future, “we expect that housing starts at the national level following a downward trend in the short term because of the negative impacts of the COVID-19 indicators of the economy and housing,” says CMHC.

Hélène Bégin chimed in : “The recent housing starts are likely to be related to the application pre-COVID-19, i.e. before the economic situation deteriorates. Therefore, it is not certain that the residential construction will maintain the current pace for much longer. The recovery period of the economy is not over and the housing market should feel. “

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