Canada Q2, had a huge, 285,000 increase in imigration. Largest increase since 1949 when Newfoundland was added.
277k for the second half approved.
This over 1500 a day.
We are just not ready to house these increases.
CMHC from August.
- The trend in housing starts was 267,309 units in August 2022, up from 264,467 units in July 2022.
- The decrease in monthly seasonally adjusted annual rate (SAAR) housing starts in Canada’s urban areas was driven by lower multi-unit starts in August.
- Vancouver registered a decline in single-detached units that was offset by higher multi-unit starts. Toronto posted strong increases across the board, while Montral recorded a large decline in multi-unit starts.
The spike in rates will slow down new construction, leading to a build up in exisiting rental demand.
Rent increases will filter into the housing market, likely stabilizing price declines at some point.
Land has to be a sought after long term asset in Canada.
Even more so when you look at land use constraints.
I bought 7k additional shares of MPC so far this week.