Although housing starts have declined over the past two years, the current six-month annualised trend of 191,456 units is arguably still above demographic requirements. With weakening home sales and worsening oversupply, there is nothing to prevent housing starts from eventually falling well below demographic requirements later this year or next. Unfortunately, this market adjustment is likely to continue for a long time, weighing on Canada's overall economic performance.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services