Quebec Housing Starts in May

MONTREAL, QUEBEC--(Marketwire - June 8, 2011) - According to the results of the latest monthly survey conducted by Canada Mortgage and Housing Corporation (CMHC), residential construction remained stable this past month in Quebec's centres with 10,000 or more inhabitants. In all, 4,274 dwellings were started in May 2011, compared to 4,236 a year earlier. However, the seasonally adjusted annual rate of starts for this same month (42,000) was higher than for the month of April (37,000).

"Since its drop in late 2010, the pace of single-detached construction has remained stable. That of multi-family dwellings also declined but recorded ups and downs. Nevertheless, in this last case, the year-to-date level is lower than that of the first five months of 2010. Thus far, the overall picture is in line with our forecast," said Kevin Hughes, Senior Economist at CMHC for Quebec.

Single-detached home building decreased by 23 per cent year-over-year in May. As well, the seasonally adjusted annual rate of single-detached housing starts in May reached 11,200 units, compared to 11,900 the previous month. Most of the census metropolitan areas (CMAs) in the province recorded losses. Based on the survey results, several regions registered notable declines (see table).

A rise in activity was registered in the multiple-unit (semi-detached, row and apartment) housing segment, where starts went from 2,592 units in May 2010 to 3,007 a year later, for a 16 per cent jump. Moreover, the seasonally adjusted annual rate of multi-family housing starts in May was measured at 30,800 units, compared to 25,100 the previous month. The May result was attributable to the strength of the Montréal and Québec markets (see table).

Still in the multi-unit housing segment, the May data show that condominium starts nearly doubled when compared to May 2010. Ownership and rental apartment starts decreased significantly over the same month in 2010 (- 22 per cent and – 30 per cent respectively).

The May results brought the year-to-date urban starts level to 15,093 units, for a decrease of 12 per cent in relation to the first five months of 2010. This decline is mostly due to the single-detached segment (- 26 per cent) than to the multi-family category (­ 6 per cent).

As Canada's national housing agency, CMHC draws on more than 65 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.