Quebec Housing Starts in January

MONTRÉAL, QUÉBEC--(Marketwire - Feb. 8, 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, 2,534 dwellings were started in January 2011, compared to 2,973 a year earlier. Moreover, the seasonally adjusted annual rate of starts for this same month (41,000) was lower than for the month of December (41,400).

"The decrease in the rate of new home construction in Quebec was attributable to the multiple-unit housing segment, which should slow down during the course of 2011," said Kevin Hughes, Senior Economist at CMHC for Quebec.

A decrease was recorded in the multiple-unit (semi-detached, row and apartment) housing segment, where starts went from 2,257 units in January 2010 to 2,014 units a year later, for a decrease of 11 per cent.

A more detailed analysis of the data indicates that rental apartment starts posted a notable decrease. In centres with 50,000 or more inhabitants, such starts dropped from 638 units in January 2010 to 391 units in January 2011. During the same period, new semi-detached housing units decreased by approximately 50 per cent.

Single-detached home building fell by 27 per cent year-over-year in January, as the majority of the CMAs in the province recorded losses. Based on the survey results, the Montréal and Québec areas registered large declines (see Table).

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.