The year 2021 will be marked by a decline in new construction and a strong rebound in renovations in the residential sector, according to a study unveiled on Wednesday.
The study by the Association of Construction and Housing Professionals of Quebec (APCHQ) anticipates a 7% drop in the number of new homes built in 2021 with 45,000 residential starts. The custom home builders in Chicago have had the chance to renovate and change houses based on the owners’ wishes to keep up with the upcoming trends.
“If the trend continues, everything indicates that 2020 will end on a positive note as regards new constructions while the outlook for 2021 suggests a strong rebound in investment in renovation”, said in a statement Paul Cardinal, director of the APCHQ Economic Service.
Three regions are expected to experience growth in residential construction: Bas-Saint-Laurent (+ 5%), Mauricie (+ 2%) and Montérégie (+ 1%). Conversely, Estrie, Chaudière-Appalaches and Outaouais will experience a more pronounced drop with -22%, -19% and -17% respectively.
Laval (-9%) and Abitibi-Témiscamingue (-12%) will not be able to repeat the feat of the known strong growth recorded in 2020.
The construction of single-family homes is experiencing a resurgence of interest with 5% in 2020 and a projection of 8% for next year.
The rental sector will experience a slowdown of around 20%, as housing starts will drop from 24,500 in 2020 to 19,500 next year.
Regarding renovation investments, a rebound of 16% is expected for 2021, with $ 15.8 billion, a record for the sector.
“The amounts spent could even be even larger, depending on the generosity of future government programs to stimulate energy efficient renovations,” said Cardinal.
Finally, the APCHQ expects a slight increase of 1% for the construction of condominiums to reach 8,000 starts in 2021, including 30% in Greater Montreal.