Housing starts in Canada appear to be slowing down, according to the latest data.
The Canada Mortgage and Housing Corporation reported on Tuesday that the annualized rate of housing starts fell 17 per cent in October compared with September of this year.
Data from the same time period last year showed housing starts increased eight per cent from September to October 2024.
Last month saw construction begin on 232,765 units compared with 279,174 units in September, according to the CMHC.
A housing start is defined by the CMHC as the beginning of construction on a building where a dwelling unit will be located, and begins officially when the concrete has been poured for the footing of the structure, or an equivalent stage if there is no basement.
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Declines in housing starts last month were led by urban centres with populations of 10,000 or more, with the biggest drops seen in Toronto at 42 per cent and Vancouver at 36 per cent.
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The CMHC also says Toronto and Vancouver both saw notable drops in starts for multi-unit dwellings, with Toronto also seeing “considerably lower” starts for single-detached homes.
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This comes just one day after Prime Minister Mark Carney survived a crucial confidence vote over his budget.
Home developers, including those in Ontario, have cited high costs to build as one of the reasons construction has slowed down, and said eliminating or discounting fees may help spur building.
In Carney’s budget, Ottawa says it will fund provinces and territories $17.2 billion over 10 years beginning in 2026. The funding will be aimed at infrastructure projects and priorities — including housing.
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However, there are conditions that must be met to access the funding, according to the budget document.
“To access funds, provinces and territories must agree to cost-match federal funding and to substantially reduce development charges and not levy other taxes that hinder the housing supply,” the budget says.
Housing Minister Gregor Robertson told reporters last month that the federal government had “initially” considered lowering development fees by 50 per cent, but he did not confirm at the time that this was being planned for the budget.
Carney’s Build Canada Homes plan aims to build 4,000 housing units on federal land starting next year.
The Conservative Party of Canada sent out a statement Tuesday following the release of the CMHC’s report.
“Mark Carney promised to build 500,000 new homes a year at speeds not seen since the Second World War. Today, his own agency confirmed that the seasonal-adjusted annual rate of housing starts collapsed 17 per cent in October to less than half of his target,” it said.
“Every Canadian deserves a home where families can be safe, share memories and raise the next generation.”
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