Housing Starts Decline in Canada
Seasonally Adjusted Annual Rate Decreases in March
According to Statistics Canada, the total monthly seasonally adjusted annual rate (SAAR) of housing starts for all areas in Canada decreased by 7% in March, falling to 242,195 units.
Government Announces Funding for Housing
In response to the decline, the Canadian government announced $20 million through Budget 2024 for Statistics Canada and Canada Mortgage and Housing Corporation (CMHC) to:
- Improve data collection and analysis related to housing starts
- Support research on housing affordability and innovation
CMHC Releases Supply Gaps Estimate Update
CMHC also released an update to its Supply Gaps Estimate (SGE), which showed that Canada is facing a significant housing shortage.
According to the report, Canada needs to build:
- 3.5 million new homes by 2030
- 200,000 new homes per year over the next 10 years
Conclusion
The decline in housing starts in March highlights the challenges facing Canada's housing market. The government's funding and CMHC's research will be crucial in addressing the housing shortage and ensuring that all Canadians have access to affordable and adequate housing.
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