Housing starts up 4%, yet affordability remains elusive

In a new report from the Canada Mortgage and Housing Corporation (CMHC), housing starts in Canada’s six largest cities saw a 4% year-over-year increase in the first half of 2024. Despite this growth, the construction rate remains insufficient to meet escalating demand. Calgary, Edmonton, and Montreal reported significant increases, while Toronto, Vancouver, and Ottawa faced declines of up to 20%.

A total of 68,639 housing units began construction, marking the second-highest figure since 1990. However, high interest rates and regulatory hurdles continue to impede development, particularly in Toronto and Vancouver, where condominium projects are stalling due to reduced investor confidence.

CMHC deputy chief economist Aled ab Iorwerth expressed concern over ongoing affordability challenges, noting that while more rental units are being built, a sustained effort is needed to address the supply gap.