Developers also shifted their focus to clearing backlogs of projects already under construction, which led to a surge in apartment completions across all six CMAs, except for Montréal and Vancouver.
However, despite these efforts, per-capita housing starts remained flat compared to the same period last year, meaning the rate of new construction failed to keep pace with population growth, raising concerns about housing supply and affordability.
Aled ab Iorwerth, deputy chief economist for CMHC, said, “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.”
He continued, “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.”
Municipalities and provinces are actively working to address this supply-demand challenge. Efforts to increase the overall housing supply and offer a greater variety of housing types remain ongoing, even amid regional differences in new home construction.