In a surprise to no one announcement, we are witnessing an increase in housing starts again as the winter thaws and the construction industry gets back to work. In today’s restrictive major-construction financing industry, large multi-family/condo style buildings cannot begin construction, or even confirm construction financing, without a large percentage of pre-sales collected. This means that while there seems to be a lot of new condo starts occurring in Ontario and BC, especially in the Greater Toronto Area and Greater Vancouver, the market has kept up with demand.The number of pre-sales demonstrates the truth of this.
This is also true for the more recent increase in the development of rental-only apartment buildings that have started in the last quarter. Without a proven demand for these starts, there would be no financing and with no financing, there would be no starts to count.