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Canada  + Alberta & Prairies + Ontario + Pacific Canada + Quebec  + Apartments  | 
Montreal condo prices rose in the first quarter of 2024.

Montreal Apartment Starts Down 35%

Montreal apartment-construction starts fell 35% in 2023, says a new Canada Mortgage and Housing Corporation report.

The situation in Montreal contrasted with a surge in overall Canadian apartment starts that prevented a decline in total new-home construction, which remained on par with the 2022 level.

Apartment construction, including purpose-built rental suites and condominium units, reached record levels in Toronto, Vancouver, Calgary and Ottawa in 2023. But Montreal fell to an eight-year low, said CMHC in its latest Housing Supply Report (HSR)

“As we noted in our Fall 2023 Housing Supply Report, Montréal tends to build small, low-rise apartment structures,” states the CMHC report. “Because of their smaller size, these projects take less time to plan and build. The decline in apartment starts in Montréal was, therefore, reflective of the current, more challenging context of higher financing and construction costs.”

Total Montreal housing starts fell 37% to 15,235 units, the lowest level in more than 20 years, while ground-level home types reached an all-time low.

Overall, Canadian apartment construction surged 7% in 2023; however, single-detached home starts declined 20%. But Aled ab Iorwerth, CMHC’s deputy chief economist, warned that apartment developers may not be able to maintain the same pace in 2024.

The CMHC report covers Canada’s six largest cities, including suburbs.

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About Monte Stewart

Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate. Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s. In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star. Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.

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