Housing starts across Canada surged in June to hit their highest level in 10 years, according to Canada Mortgage and Housing Corp. (CMCH).
The national housing agency said that the annual rate of housing starts in Canada during June totalled 281,373 units, up 40% from 200,018 in May of this year.
The rate of multi-unit urban starts rose 59% to 219,914, while the rate of starts for single-detached urban homes increased by 3% to 42,901.
Toronto and Vancouver led the way in construction, comprising 47% of total housing starts across Canada in June.
The increase seen in June reverses a downward trend that began in November 2022 as rising interest rates brought Canada’s housing sector to a virtual standstill.
Despite the June increase, housing starts in Canada during the first six months of the year were 8% lower than they were over the same period of 2022 as high interest rates keep many potential homebuyers on the sidelines.
CMHC estimates that Canada needs to build an additional 3.5 million housing units by 2030 to meet current demand.
