The recent announcements of tax incentives by various levels of government are part of this positive direction.
“Where we’re seeing the most activity is on the high-rise component. Single detached home starts are down and down significantly,” Moffatt said. “I think these [policies] are starting to have an effect. It will take time.”
“Obviously, planning a high-rise building takes a fair bit of time, but I think we’re already seeing the HST move, and some of these other moves start to kick in and create some purpose-built rental starts.”
In October, Canada’s housing starts saw a modest 1% uptick, reaching a seasonally adjusted annual rate of 274,681 units.
— Canadian Mortgage Professional Magazine (@CMPmagazine) November 16, 2023
Mounting costs placing starts trend at risk, says CHBA
However, builders are still labouring under mounting costs and elevated interest rates, the Canadian Home Builders’ Association (CHBA) said recently.
Sixty-five per cent (65%) of CHBA’s latest Housing Market Index survey panel said that interest rates forced them to build fewer units during the third quarter, while 37% reported that they have outright cancelled projects, up from the 26% share in Q2.