Canadian housing starts stable in second quarter of 2024

The seasonally adjusted annual rate of housing starts in Canada was 245,708 in the second quarter, according to the Canada Mortgage and Housing Corporation. That figure is 1.5% below the prior quarter and 0.9% higher than the same period in 2023. Over the past five quarters, the rate of starts has been somewhat consistent, ranging from 243,515 to 255,702.

Starts of single-detached dwellings in urban centers totaled a rate of 41,171 in the second quarter, down 3.9% from the first quarter and 1.6% from the same period last year. All other housing starts in urban centers came in at 185,521, down 1.3% from the previous quarter but up 0.7% year over year. In areas with a population of 10,000 or less, only 19,016 homes were started. However, that number exceeded both the second quarter of last year and this year’s first quarter.

One of the more notable changes in Canadian residential construction is the downturn in Ontario. In the second quarter of this year, starts in that province dropped to 72,632, which is 7.0% below the first quarter and down 26.0% from the same period a year ago.

In the second quarter of last year, 4.3 out of every 10 homes started in Canada were in the province of Ontario. This year, the ratio dropped to 3.2 out of 10. Unaffordable home prices in the Greater Toronto Area are one of the major reasons for the decline in that province’s residential construction.

With its average home price around $1 million, B.C. is another province with affordability issues. Consequently, second-quarter housing starts there dropped 9.4% from the first quarter and 11.5% from the previous year.

Meanwhile, where homes are less expensive, starts in the second quarter increased significantly. Compared to last year, Quebec was up 52.6%, the Prairies 40.5%, and the Atlantic provinces 16.5%.

For June, the rate of Canadian housing starts totaled 241,672, down 8.8% from the prior month. For the year through June, starts are on pace to exceed last year’s total of 240,267. 

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