The Canada Mortgage and Housing Corp. (CMHC) reported on Thursday that the annual pace of housing starts in April rose compared to March, signaling continued momentum in the country's housing market. The seasonally adjusted annual rate of housing starts reached 241,500 units in April, up from 234,200 units in March, marking a 3.1% increase.
Urban Multi-Unit Projects Lead the Gain
The increase was primarily driven by a rise in urban multi-unit starts, which climbed 4.2% to 190,200 units. Urban single-detached starts also saw a modest uptick, rising 0.5% to 43,200 units. Rural starts were estimated at 8,100 units.
CMHC chief economist Bob Dugan noted that the growth was widespread across many regions, with British Columbia and Ontario posting significant gains. "The increase in housing starts reflects strong demand and builder confidence, despite ongoing challenges such as higher interest rates and supply chain issues," Dugan said in a statement.
Regional Variations
On a regional basis, the annual pace of starts increased in six of Canada's 10 provinces. British Columbia saw a 12% jump, while Ontario recorded a 5% rise. Alberta and Quebec experienced more modest gains, while starts declined in Manitoba, Saskatchewan, and Atlantic Canada.
The trend of multi-unit construction dominating new housing starts continues, as builders focus on condos and rental apartments to address affordability concerns. However, single-detached starts remain below pre-pandemic levels.
Outlook for 2025
CMHC's report comes amid a broader housing market that has shown resilience. The agency forecasts that housing starts will remain elevated through 2025, supported by population growth and low inventory levels. However, risks such as rising mortgage rates and construction costs could temper activity in the latter half of the year.
Industry experts say the April data is a positive sign for the housing sector, but caution that affordability challenges persist. "We're seeing builders respond to demand, but the pace of construction still falls short of what's needed to address the housing shortage," said a spokesperson for the Canadian Home Builders' Association.
The full CMHC housing starts report is available on the agency's website.
