Quebec housing starts up significantly in February

According to the latest monthly starts survey conducted by Canada Mortgage and Housing Corporation (CMHC), residential construction registered a strong increase this past month in centres with 10,000 or more inhabitants across Quebec. In fact, 2,810 housing units were started in February, or 50 per cent more than during the same period a year earlier.

The dynamics were different, however, depending on the centres. Starts rose by 51 per cent in the census metropolitan areas (CMAs) but fell by 6 per cent in the smaller agglomerations (50,000 to 99,999 inhabitants). The Montréal area stood out by being the engine of this growth. In fact, foundations were laid for 2,167 new dwellings there in February 2008, compared to 1,262 in February 2007, for an increase of 72 per cent. Housing starts went up less significantly in Saguenay (+56 per cent) and Trois-Rivières (+ 21 per cent), while they declined in Québec (-32 per cent), Sherbrooke (-10 per cent) and Gatineau (-3 per cent).

Just like in January, multi-family housing starts supported the strong growth observed this past month across Quebec. These starts increased by 67 per cent (from 1,243 units in February 2007 to 2,082 in February 2008), for a gain that was four times greater than the increase in single-detached home starts. “Thanks to the vigorous activity in the retirement home segment, which accounts for 60 per cent of all rental housing starts, the number of units of this type that got under way in February more than tripled over last year,” said Kevin Hughes, Regional Economist at CMHC.

As well, multiple housing starts rose by 68 per cent across all CMAs. However, while such starts were up in Saguenay (+100 per cent), Montréal (+ 95 per cent) and Trois-Rivières (+15 per cent), declines were recorded in Québec (-39 per cent), Sherbrooke (-35 per cent) and Gatineau (-21 per cent). The smaller agglomerations, for their part, registered a decrease of 9 per cent in multi-family housing starts.

The survey also revealed that single-detached housing starts rose by 16 per cent in February 2008 (728 new units, versus 628 a year earlier). In fact, starts of this type increased in all CMAs, except Québec (-24 per cent). The Sherbrooke CMA led the pack, as single-detached home starts doubled there, followed by Trois-Rivières (+42 per cent), Gatineau (+25 per cent), Montréal (+20 per cent) and Saguenay (+20 per cent). In the smaller agglomerations, however, starts of this type remained stable.

“Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency for more than 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, while making vibrant, healthy communities and cities a reality across the country. For more information, visit www.cmhc.ca or call 1-800-668-2642.”

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Posted by:  Deya Bautista - Affiliated Real Estate Agent working as part of the McGill Immobilier team. Specializing in condos and revenue property in the metropolitan area of Montreal. For buying or selling contact Deya at: 514.917.7889

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