Housing starts to slow this year and next: CMHC

By Special to MoneySense on May 18, 2016
Estimated reading time: 1 minute

Between 172,600 units and 183,000 units expected to be started in 2017

OTTAWA – Canada Mortgage and Housing Corp. says significant regional differences in home construction will be apparent over the coming years, with slower activity in most areas dragging down overall construction in 2016 and 2017. The Ottawa-based agency is estimating that between 181,300 and 192,300 housing units will be started this year. Bidding wars on houses move beyond downtown Toronto core » That’s expected to drop to 172,600 units and 183,000 units started in 2017. Both ranges have been lowered from CMHC’s previous outlook released late last year. CMHC says slower activity in oil-producing provinces such as Alberta will be partly offset by increased activity in British Columbia and Ontario. The Crown corporation also says there will be a decline in the number of previously owned homes that are resold in 2017 from this year but the average price is expected to increase over the same period to as high as $501,100 in 2017. Saving 20% to buy a house? It’ll take you 12 years » Citing data from the private-sector Multiple Listing Service, CMHC says it expects 2017 existing home sales will drop to between 485,500 units and 508,400 units from between 501,700 and 525,400 units in 2016.