Quebec Housing Starts in January

MONTRÉAL, QUÉBEC--(Marketwire - Feb. 8, 2012) - According to the results of the latest monthly survey conducted by Canada Mortgage and Housing Corporation (CMHC), residential construction fell by more than 30 per cent this past in Quebec's centres with 10,000 or more inhabitants. In all, 1,712 dwellings were started in January 2012, compared to 2,516 a year earlier. In addition, the seasonally adjusted annual rate of starts for this same month (28,200) was considerably lower than for the month of December (43,000).

The decline in residential construction last month was attributable to both the single-detached and multiple-unit (semi-detached, row and apartment) housing segments.

Single-detached home starts decreased by 20 per cent, compared to January 2011. The seasonally adjusted annual rate of starts for January (9,700) was also lower than for December (10,900). With the exception of the Sherbrooke and Trois-Rivières areas, all of the census metropolitan areas recorded losses. The results were mixed in the larger census agglomerations (see table). "The easing of resale market conditions in 2011 and the popularity of condominiums during this same period contributed to this result," explained Kevin Hughes, Senior Economist at CMHC for Quebec.

In the multi-unit housing category, a notable drop (-35 per cent) was registered this past January. In addition, the seasonally adjusted annual rate of starts for January (18,500) was significantly lower than for December (32,100). Regionally, the results were similar to the levels recorded for single-detached homes, with considerable decreases noted in the Montréal, Gatineau, Québec and Saguenay metropolitan areas. As well, the January survey revealed that the decline was due to a slowdown in condominium and rental housing construction. "While activity can be expected to pick up slightly, the pace anticipated for 2012 will be well below the rate observed in 2011," said Mr. Hughes.

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. 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 informed decisions. For more information, visit www.cmhc.ca or call 1-800-668-2642.