This report examines the short-and medium-term economic and profitability outlook for Canada’s residential construction industry.
Although rising mortgage rates and a cooling resale market present near-term challenges for homebuilders, strong population growth will bolster long-term residential demand.
Homebuilders are still busy replenishing low stocks of completed and unsold units. The national volume of units under construction hit a record high in May.
Easing prices for lumber and slowing price growth for other construction inputs are cooling currently high growth in new home prices.
A shortage of tradespeople is possibly the industry’s biggest long-run threat.
Innovative techniques, including 3-D printing and prefabricated dwelling components, could help address such shortages by partially automating homebuilding.
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