Quebec Housing Starts in March

MONTRÉAL, QUÉBEC--(Marketwire - April 11, 2012) - According to the results of the latest monthly survey conducted by Canada Mortgage and Housing Corporation (CMHC), residential construction fell by 17 per cent this past month in Quebec's centres with 10,000 or more inhabitants. In all, 2,571 dwellings were started in March 2012, compared to 3,111 a year earlier. In addition, the seasonally adjusted annual rate of starts for this same month (35,000) was lower than for the month of February (41,800).

The decrease in residential construction this past month was attributable to the multiple- unit (semi-detached, row and apartment) housing segment, as single-detached home building fell only slightly.

In the multi-unit housing category, a decline of 21 per cent was registered this past March. In addition, the seasonally adjusted annual rate of starts for March (24,300) went back down since February (30,900). Regionally, a drop of 44 per cent was observed in the Montréal census metropolitan area (CMA). Elsewhere in Quebec, multiple-family housing starts were on the rise in most CMAs. "It should be specified that the decrease in multi-unit housing starts is attributable to the decline noted in the rental segment. While condominium construction remains strong for the moment, we forecast that it will slow down, given the high inventory and a lower demand," said Kevin Hughes, Senior Economist at CMHC for Quebec.

Still according to the survey results, single-detached housing starts decreased from the same month in 2011. The 726 new units enumerated in this category in March made for a 5-per-cent decrease from March 2011. The seasonally adjusted annual rate of starts for March (10,700) was slightly lower than for February (10,900). Regionally, the results were mixed (see table).

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.