Quebec Housing Starts in April

MONTRÉAL, QUÉBEC--(Marketwire - May 9, 2011) - According to the results of the latest monthly survey conducted by Canada Mortgage and Housing Corporation (CMHC), residential construction decreased this past month in Quebec's centres with 10,000 or more inhabitants. In all, 3,474 dwellings were started in April 2011, compared to 4,645 a year earlier. As well, the seasonally adjusted annual rate of starts for this same month (36,800) was lower than for the month of March (40,600).

"This decrease in the pace of residential construction in Quebec was attributable to multiple-unit housing and is in line with our forecast," said Kevin Hughes, Senior Economist at CMHC for Quebec.

Single-detached home building decreased by 31 per cent year-over-year in April. However, the seasonally adjusted annual rate of single-detached housing starts in April reached 12,000 units, compared to 11,300 the previous month. Most of the census metropolitan areas (CMAs) in the province recorded losses. Based on the survey results, the Montréal and Québec areas registered notable declines (see table).

A decrease in activity was also registered in the multiple-unit (semi-detached, row and apartment) housing segment, where starts went from 2,918 units in April 2010 to 2,286 a year later, for a decline of 22 per cent. Moreover, the seasonally adjusted annual rate of multi-family housing starts in April was measured at 24,800 units, compared to 29,300 the previous month. With the exception of the Trois-Rivières region, all of the province's CMAs posted drops in housing starts (see table).

Still in the multi-unit housing segment, the April data show that rental apartment starts decreased significantly over the same month in 2010. In centres with 50,000 or more inhabitants, they registered a loss of 23 per cent.

The April results brought the year-to-date urban starts level to 10,819 units, for a decrease of 17 per cent in relation to the first four months of 2010. This drop was due to both the single-detached and multiple-family housing segments. "The quarterly starts total for Quebec's urban centres remains in line with our forecasts," added Kevin Hughes.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions. For more information, visit www.cmhc.ca or call 1-800-668-2642.