Canadians will soon see an unprecedented increase in housing supply. RBC’s analysis revealed multi-year highs in new home construction at various stages during Q2 2021. The highest number of new housing starts in more than three decades was reached in Q2 2021. In the coming months, homes that have been completed will reach a multi-decade record. Canada has never seen so many homes being built at once.
Canadian New Homes Starts Reach Their Highest Level Since 1977
The highest number of new housing starts in Canada in more than three decades has been reached by Canadians. In Q2 2021, the seasonally adjusted annual rate of housing starts was 260,500 units. This is 26.75% more than last year and 26% more than the average for 2015-2019. The foundation is ready for use. These units will usually contribute to the supply in the next two-years.
Canada has Never Had More Homes Under Construction
Canada has never had so many homes in construction. In Q2 2021 the SAAR for homes under construction was 320,000, an increase of 13.30% over the previous year. This record is for the total number of homes in construction. RBC warns that delays could occur if there is a shortage of labor or material. It appears that the shortage of material is starting to improve.