Quebec Housing Starts in June

MONTRÉAL, QUÉBEC--(Marketwire - July 11, 2011) - According to the results of the latest monthly survey conducted by Canada Mortgage and Housing Corporation (CMHC), residential construction declined this past month in Quebec's centres with 10,000 or more inhabitants. In all, 3,816 dwellings were started in June 2011, compared to 4,223 a year earlier. As well, the seasonally adjusted annual rate of starts for this same month (42,800) was lower than for the month of May (44,400).

"The June results brought the semi-annual urban starts level to below the 20,000 unit mark, for a decrease of 10 per cent in relation to the first six months of 2010. This decline is mostly due to the single-detached segment (- 20 per cent) than to the multi- family category (- 4 per cent)," said Kevin Hughes, Senior Economist at CMHC for Quebec.

"With regard to multi-family homes, the picture is contrasted. On the one hand, we observe notable drops in semi-detached and town-home (- 17 per cent) starts as well as on the rental apartment (- 27 per cent) side. On the other hand, condominium apartment starts post a gain of approximately 20 per cent. Given the current stock of condominiums on the market, a slowdown should be expected," added Kevin Hughes.

Single-detached home building decreased by 14 per cent year-over-year in June. As well, the seasonally adjusted annual rate of single-detached housing starts in June reached 11,300 units, compared to 12,000 the previous month. Most of the census metropolitan areas (CMAs) in the province recorded losses. Based on the survey results, several regions registered notable declines (see table).

A decrease in activity was registered in the multiple-unit (semi-detached, row and apartment) housing segment, where starts went from 2,774 units in June 2010 to 2,575 a year later, for a 7 per cent drop. Moreover, the seasonally adjusted annual rate of multi-family housing starts in June was measured at 31,500 units, compared to 32,400 the previous month. The June result was attributable to the strength of the Montréal, Québec and Trois-Rivières markets (see table).

Still in the multi-unit housing segment, the June data show that condominium starts were up when compared to June 2010 (9 per cent). Again, ownership and rental apartment starts decreased significantly over the same month in 2010 (- 27 per cent in both cases).

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 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.