The U.S. housing market continues to show mixed trends well into 2024. After holding above 7% for the past year, the average 30-year mortgage rates fell in August to 6.47%. Although rates have begun to trend lower, the market for single-family homes continues to be sluggish as buyers and sellers anticipate a rate cut.
Multi-family housing continues to be challenged by increased borrowing costs and higher costs of building materials. Although prices for input materials have begun to level or decline, costs still remain well above pre-pandemic levels. With longer construction lead times, and permitting and financing requirements, the commercial market is expected to have a slower recovery even with an expected rate cut.
In June 2024, Canadian housing starts decreased 15.7% YoY and decreased 9.4% when compared to May 2024. The YoY decline was predominately driven by an 18.8% YoY decrease in multi-unit housing starts. Housing starts in the second quarter of the year were slightly higher than the first quarter. Elevated cost of building inputs and high interest rates has led to the general slowdown in multi-unit starts, particularly in Toronto and Vancouver.
The value of authorized building permits declined MoM by 13.9% in June 2024. YoY, the value of authorized building permits decreased by 16.8%, mostly attributed to a 29.7% decline in the nonresidential category.
Learn more in our latest U.S. and Canada Building Products & Materials—Fall 2024 Report.
