2023 construction sector forecast: a 32% decline is expected in the rental sector

Last Monday, the APCHQ (Association des professionnels de la construction et de l'habitation du Québec) unveiled the 2023 forecast for the residential construction and renovation sector in Quebec.

The recent rise in interest rates in 2022 will have a negative effect on the number of 2023 housing starts and residential renovation spendings. Despite a 14% decline in 2022, the APCHQ expects another decline of 21% in 2023, with 46,000 units started. For the rental sector, the decline is greater at 32%. This is the strongest decline in the Quebec market since 1995. In the condominium sector, the pace of construction is expected to be half that of its peak in 2012.

With housing vacancy rates fairly low across Quebec, this forecast for housing starts suggests greater difficulties for people looking for housing in 2023. Measures to stimulate housing supply will be needed to restore balance. Let's hope that the next government budget will make this issue a priority. For CORPIQ, it is absolutely necessary to review the conditions and the rental environment in Quebec. Last August, the document "32 solutions to the housing crisis" was a call to action that we must remember again today.

 

Link to the study : Prévisions 2022-2023 du secteur de la construction et de la rénovation résidentielles au Québec