Housing starts likely to fall further this year

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.