2022 higher interest rates caused a 10-15% drop in Canadian housing starts, particularly affecting condo projects.

A report from Canada Mortgage and Housing Corp. (CMHC) indicates that higher interest rates in 2022 led to a decrease of about 30,000 housing starts, representing a 10-15% drop in new construction, particularly affecting condo projects. Despite this, supportive economic factors and government policies bolstered rental building construction. Following interest rate hikes aimed at controlling inflation, fixed-rate mortgage rates have begun to decline as the central bank cuts rates.