The strong housing market in southwestern Ontario will still grow, though not as aggressively as in the last couple of years, according to a report released Thursday.
The Canadian Mortgage and Housing Corporation (CMHC) put out its latest housing outlook, which has projected, through at least 2024, a continuously active housing market, though the increase in home and rent prices will begin to slow down.
“We expect the growth in prices, sales levels, and housing starts to moderate from recent highs, but remain elevated in 2022,” read the report summary. “Robust GDP growth, higher employment and net migration will support demand.”
The nationwide number of housing starts set a record in 2021 of 271,198. However, the low threshold shown by the projections is gradually reduced until 2024, when it is forecast at 223,300.
Nevertheless, the outlook still expects higher demand to boost prices. In Windsor, for example, economic recovery is expected to keep the need for housing up.
“As the Windsor economy continues to recover from the impact of COVID-19 restrictions, the expected return to pre-pandemic migration levels should boost housing demand,” said Market Insights Senior Analyst Tad Mangwengwende. This would reduce rental apartment vacancy rates and continue to drive house and rent price increases.”
Mangwengwende added that the increase in prices for homebuyers in Windsor-Essex won’t skyrocket as much through 2024.
Meanwhile, London will experience similar demand for housing.
“London’s relative affordability advantage over other major CMAs in Ontario is expected to keep housing market activity strong in 2022,” said Market Insights Senior Analyst Musawer Muhtaj. “That said, housing market activity is expected to moderate in the medium term due to rising borrowing costs.”
The resale market in London-Middlesex may drop this year due to those increased borrowing costs, and housing starts could level off from last year’s record highs as the main priority of builders will be to complete housing that is already under construction.
The outlook does not expect much to change in other markets where housing stock is already low, such as Toronto, Montreal, Vancouver, and Ottawa.
The complete housing outlook is available on the CMHC website.
