Quebec Housing Starts in March

MONTRÉAL, QUÉBEC--(Marketwire - April 8, 2011) - According to the results of the latest monthly survey conducted by Canada Mortgage and Housing Corporation (CMHC), residential construction decreased this past month in Quebec's centres with 10,000 or more inhabitants. In all, 3,111 dwellings were started in March 2011, compared to 3,424 a year earlier. However, the seasonally adjusted annual rate of starts for this same month (40,500) was higher than for the month of February (37,300).

"This increase in the pace of residential construction in Quebec was attributable to multiple-unit housing. That being said, activity in this segment should slow down by the end of 2011," said Kevin Hughes, Senior Economist at CMHC for Quebec.

Single-detached home building decreased by 32 per cent year-over-year in March, as most of the census metropolitan areas (CMAs) in the province recorded losses. Based on the survey results, the Montréal and Québec areas registered notable declines (see table). The seasonally adjusted annual rate of single-detached housing starts in March reached 11,300 units, compared to 11,700 the previous month.

A marginal increase in activity was registered in the multiple-unit (semi-detached, row and apartment) housing segment, where starts edged up from 2,297 units in March 2010 to 2,343 a year later, for a gain of 2 per cent. However, the seasonally adjusted annual rate of multi-family housing starts in March reached 29,200 units, compared to 25,600 the previous month. Regionally, the results were highly mixed, as the Montréal and Sherbrooke CMAs posted strong gains, while the Québec, Trois-Rivières, Saguenay and Gatineau areas experienced notable declines (see table).

Still in the multi-unit housing segment, the March data show that both rental and condominium apartment starts increased significantly over the same month in 2010. In centres with 50,000 or more inhabitants, they registered hikes of 18 per cent and 13 per cent, respectively.

The March results brought the year-to-date urban starts level to 7,345 units, for a decrease of 12 per cent in relation to the first quarter of 2010. This drop was due to both the single-detached and multiple-family housing segments. "The quarterly starts total for Quebec's urban centres is in line with our forecasts," added Kevin Hughes.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. 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 vital decisions. For more information, visit www.cmhc.ca or call 1-800-668-2642.