New home construction is up in 6 largest cities, but supply gap persists [Video]

The Canada Mortgage and Housing Corp. says construction of new homes in Canada’s six largest cities rose four per cent year-over-year during the first half of 2024, but housing starts were still not enough to meet growing demand.

The agency said Thursday the growth in housing starts was driven by significant gains in Calgary, Edmonton and Montreal, while Toronto, Vancouver and Ottawa saw declines ranging from 10 to 20 per cent from the same period last year.

A total of 68,639 units began construction, the second strongest figure since 1990. However the rate of housing starts per capita meant activity was around the historical average and not enough “to reduce the existing supply gap and improve affordability for Canadians.”

Housing starts in Canada’s two largest markets, Toronto and Vancouver, were plagued by “traditional problems” such as high costs and regulatory delays, but also faced the additional hurdle of high interest …