Lower housing starts forecast in 2024 before recovering over next two years

By Canada Mortgage and Housing Corporation
Cision Newswire
April 4, 2024
Category: Finance & Economics
Region: Canada

Bob Dugan

OTTAWA – After reaching historically high levels in recent years, housing starts in Canada are expected to decline in 2024, before recovering in 2025 and 2026, reflecting the lagged effect of higher interest rates on new construction. This according to the latest Housing Market Outlook released by Canada Mortgage and Housing Corporation. The outlook provides overviews and forecasts for new home construction, rental markets, home sales and home prices. …Despite an increase in rental housing coming on the market in 2023, supply is not forecast to keep up with demand, resulting in higher rents and lower vacancy rates. …In the homeownership market, both home prices and sales are forecast to rise in 2024. By 2025, prices could reach the peak levels recorded in early 2022 and surpass them in 2026, driven by high demand. Home sales will rebound in 2024, but will remain below the record 2020-21 levels, restricted by affordability challenges among prospective buyers.

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