News Summary

The Canadian homebuilding industry is grappling with record low sentiment levels, as reported by the Canadian Home Builders’ Association (CHBA) in its 2024 Q4 Housing Market Index (HMI). The multi-family HMI reached a new low of 22.0, down 6.5 points from the previous quarter, while the single-family HMI fell to 25.1. This decline in builder sentiment is attributed to poor sales conditions, particularly in Ontario and British Columbia, where affordability issues persist due to high ownership cost-to-income ratios. Builders are also facing increased construction costs, with non-lumber material expenses adding $36,000 to the price of a typical home. The CHBA emphasizes the need for government policy changes to address these challenges, suggesting reductions in taxes on new homes and quicker development approvals to improve market conditions and housing affordability.