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Canada's Housing Market Shows Strength in July 2024
Housing Starts Rise to Highest Level in Over a Year
Canada's housing market continues to show resilience, with housing starts reaching their highest level in over a year in July 2024.
Key Findings
- The seasonally adjusted annual rate (SAAR) of total housing starts increased by 16% in July compared to June.
- The SAAR of total housing starts for all areas in Canada was 241,672 units in June 2024.
- The increase was driven by a surge in the construction of multi-family dwellings, such as apartments and townhouses.
Factors Contributing to the Rise in Housing Starts
Several factors contributed to the increase in housing starts in July 2024, including:
- Strong demand for housing: The demand for housing remains high due to population growth, low interest rates, and a desire for larger homes.
- Government incentives: Government incentives, such as the First-Time Home Buyer Incentive, have made it easier for first-time buyers to enter the market.
- Construction of rental units: Developers are building more rental units to meet the growing demand for affordable housing.
Impact on the Housing Market
The rise in housing starts is expected to have a positive impact on the housing market, including:
- Increased supply: The construction of new homes will increase the supply of housing, which could help to moderate price increases.
- Economic growth: The construction of new homes generates economic activity and creates jobs.
- Improved affordability: The increased supply of rental units could help to make housing more affordable for renters.
Conclusion
The rise in housing starts in July 2024 is a sign of continued strength in the Canadian housing market. The increase was driven by several factors, including strong demand for housing, government incentives, and the construction of rental units. The rise in housing starts is expected to have a positive impact on the housing market, including increased supply, economic growth, and improved affordability.
Sources
- Canada Mortgage and Housing Corporation: Housing starts rise to highest level in over a year
- Bloomberg: Canada's housing starts surprisingly rose to the highest level in more than a year