Quebec sees a surge in new construction undertakings commencing since the year's start
In a recent development, the Canadian Mortgage and Housing Corporation (CMHC) has predicted a significant increase in residential construction activities in Quebec for the year 2025. This optimistic outlook was shared by Francis Cortellino, an economist at CMHC, who stated that 2025 is likely to be a good year for residential construction in the province.
The CMHC's Deputy Chief Economist, Kevin Hughes, also emphasised the need for an increase in housing starts to restore affordability in Quebec over the next decade. In a report published in June, the CMHC indicated that an average of nearly 480,000 housing starts per year is required to achieve this goal. However, current projections suggest a lower number of 245,000, falling short of the needed amount.
The housing starts in Sherbrooke have been more moderate since the beginning of the year but are approaching the historical average. On the other hand, Montreal and Quebec have shown a strong increase in housing starts compared to the same period last year, with an increase of 47% and 42% respectively.
However, it's not all positive news. Gatineau is an exception with a decrease in housing starts since the beginning of the year, showing a decrease of 13%. Sherbrooke, too, has only seen a smaller increase of 5%.
These increases are coming amidst challenges faced by builders. Labor shortages, increases in construction costs, and infrastructure issues are some of the obstacles they face in their attempts to increase the supply of housing.
Despite these hurdles, the CMHC released data showing an acceleration in housing starts in most major metropolitan regions of Quebec between January and August 2025. The data indicates a rebound from last year, which was 'quite low,' according to Mr. Cortellino.
As the year progresses, it will be interesting to see how these trends unfold and whether they contribute significantly to addressing the affordability issue in Quebec's housing market.
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