- Over the past five years, the annual average number of housing starts in Peel Region was in line with the established long-term sustainable level at 6,000 units.
- Recent performance deviated from trend as new housing measures have reduced demand for new housing units and curtailed the number of starts.
Over the past five years, the number of housing starts recorded in Peel Region averaged approximately 6,000 units, which was consistent with Peel’s established long-term sustainable level of starts.
In 2018, the total number of housing starts was 4,978 units, down by 26.1 per cent from the level attained in 2017, and below the five-year average.
Performance in 2018 was affected by the new housing policies instituted since late 2016 and increases in interest rates which started in 2017 and continued in 2018.
As intended, the new policies constrained the ability of consumers to purchase new housing units and consequently reduced the number of housing starts.
Housing Starts by Segment
Over the past decade, the composition of Peel housing starts has shifted towards the multiple segment of the market.
Given the tendency for multiple starts to be a part of very large projects with many units, more of these projects have increased the variability in total housing starts in Peel.
After a 25.7 per cent increase in 2017, the number of housing starts recorded in Peel fell by 26.1 per cent in 2018 to a multi-year low as both single and multiple starts declined as follows:
- Singles: down by 51.6 per cent to a nine-year low of 1,341 units and was the main source of decline; and
- Multiples: down 8.3 per cent 3,637 units.
With a more significant decline in single starts, the single segment of the market lost market share from 41.1 per cent in 2017 to 26.9 per cent in 2018, which was one of the lowest market shares recorded in Peel.
The multiple segment of the market increased its market share to 73.1 per cent in 2018, one of the highest shares recorded by this market segment.
Housing starts by Municipality
Since 2009, the City of Brampton consistently accounted for the highest number of housing starts in Peel.
In 2018, this trend was broken when there were 2,787 starts in the City of Mississauga, which was above the total starts in the City of Brampton (1,466 units) and the Town of Caledon (725 units).
Housing Starts in the GTA and Toronto CMA
In 2018, there was also more multiple starts in the Toronto Census Metropolitan Area (CMA) and the Greater Toronto Area.
The total number of housing starts increased in both the Toronto CMA (up 6.1 per cent) and the GTA (up 6.6 per cent).
Multiple starts drove growth in both markets:
- Toronto CMA: up 21.5 per cent to 28,566 units; and
- GTA: up 19 per cent to 36,089 units.
The number of single starts fell in both the Toronto CMA (-37.0 per cent) and the GTA (-29.2 per cent), and as a result, the share of total starts accounted for by single units in both markets fell to their lowest level in over 17 years.