Canadian builders taking fewer projects, plan to cut productivity in half
https://tnc.news/2024/08/26/builders-taking-fewer-projects/
Canadian builders have shown declining interest in taking on new projects, as productivity on build starts has dropped for the eighth consecutive quarter, according to a new survey.
The Canadian Home Builders Association published its second quarter survey called the Housing Market Index, indicating the present and future health of Canada’s residential construction industry.
The HMI survey assesses the current selling market and expectations for selling conditions over the next six months as well as buyer interest and the association said its findings “continue to reflect broadly negative views about the health of new home sales.”
“The single-family HMI recorded a score of 29.9 (out of 100), which is 5 points lower than in the previous quarter and 10 points lower than in Q2 2023,” reads the survey.
“The second quarter 2024 multi-family HMI score is 32.5, which is 5.4 points lower than in the previous quarter and 8.5 points lower than Q2 from a year ago. These latest results indicate that builder sentiment has been downbeat for two full years.”
The CHBA also noted that the full effects of interest-rate-driven sales have yet to be felt, given the differences in building timelines and builders’ reliance on sales so they can secure financing.
British Columbia and Ontario appear to be the provinces where builders are less optimistic about the prospects of building, the problem is further exacerbated by the fact that the two also represent the majority of new starts for this year. Continue…