Housing starts flat in the first half of 2023, Toronto and Vancouver have best numbers

Canada Mortgage and Housing Corporation's (CMHC) latest Housing Supply Report (HSR) has shown only a slight change in housing supply in the first half of 2023, with just 1% growth recorded. The report examines new housing construction trends in Canada's six largest Census Metropolitan Areas (CMAs). According to the report, the data could have resulted from tighter borrowing conditions, elevated construction and labor costs, and high interest rates, bringing forth a challenging environment for homebuilders across all six major markets. 

Nearly two-thirds of housing starts across the six markets were in Toronto and Vancouver, and a strong growth has been observed in apartment starts. Kevin Hughes, deputy chief economist at the CMHC said the numbers seen in these cities are the result of a process “that began at a time when financing and building conditions were considerably more favorable.”