Industry Lens: Residential Construction—April 2021
The Conference Board of Canada
April 19, 2021
This online report examines the short-and medium-term economic and profitability outlook for Canada’s residential construction industry.
- Low mortgage rates, the increased appeal of properties in outlying areas, and strong population growth are colliding to create strong residential demand, suggesting a decent outlook for this industry.
- Homebuilders are busy replenishing low stocks of completed and unsold units, particularly singles and apartments. The volume of units under construction is near a record high in many cities.
- Construction firms face high and rising prices for lumber—often a house’s biggest input.
- A shortage of tradespeople presents a longer-run threat for the industry.
- Builders have endured stagnant productivity in recent years, but more use of digital technology and prefabricated dwelling components could provide future boosts.