Canada witnesses decline in home construction rates, falling below pandemic-era numbers: report
CTV
A recent report from the Canadian Centre for Policy Alternative shows that new housing construction is at a lower level today than it was at the worst point in the pandemic economy shutdown.
A recent report from the Canadian Centre for Policy Alternative shows that new housing construction is at a lower level today than it was at the worst point of the COVID-19 pandemic economy shutdown.
According to the report published on Wednesday, there has been a significant decline in investment in various housing sectors from April 2020, the height of the pandemic economy shutdown. For instance, investment in new single-family homes has decreased by 21 per cent, investment in new row home construction is down by eight per cent, and investment in new apartment construction has seen a two per cent decrease.
The report highlights that the situation becomes notably more “dire” when compared to February 2022, when interest rate hikes started.
Investment in single-family homes has experienced a 36 per cent decline, while semi-detached houses have seen a 27 per cent drop. New row home construction showed a relatively modest decline of two per cent, while apartment building construction suffered a 19 per cent decrease, according to the report.
The report indicates that compared to the first quarter of 2022, new home construction investments are down 17 per cent, renovations have decreased by 21 per cent and ownership transfer costs have fallen by 28 per cent.
On the other hand, the report found that the real GDP hasn’t grown at all between January and July 2023, largely due to the significant decline in residential investment.
The report’s author, David Macdonald, cautiously predicts that the situation is set to deteriorate further.
