Canadian housing starts increased 22% in April to a seasonally adjusted annual rate of 261,559 units, according to Canada Mortgage and Housing Corporation.
However, officials anticipate significant drops in housing starts later this year.
“While both the SAAR of housing starts and the trend have returned to levels observed before the pandemic, housing starts are expected to drop significantly in 2023, before seeing some recovery in 2024 and 2025, according to our latest forecast,” stated Aled ab Iorwerth, CMHC's deputy chief economist. “The expected decline is due to constraints in new construction, including labor shortages, as well as higher construction and borrowing costs for housing developers.”
The full CMHC report can be found here.