New Housing Price Index, May 2023
Released: 2023-06-21
May 2023
0.1% 
(monthly change)
May 2023
0.0%
(monthly change)
May 2023
0.0%
(monthly change)
May 2023
0.0%
(monthly change)
May 2023
0.0%
(monthly change)
May 2023
0.1%
(monthly change)
May 2023
-0.1% 
(monthly change)
May 2023
0.0%
(monthly change)
May 2023
-0.2%
(monthly change)
May 2023
0.3%
(monthly change)
May 2023
0.2%
(monthly change)
Slight uptick in new home prices in Canada in May
The national index increased 0.1% month over month in May, its first increase since August 2022. Prices were up in 6 of the 27 census metropolitan areas (CMAs) surveyed in May 2023, down in 8 and unchanged in the remaining 13 CMAs.
Chart 1
New Housing Price Index
Builders link price growth to construction costs
In May, new home prices grew the most month over month in the Québec (+0.9%), Calgary (+0.8%) and Kelowna (+0.6%) CMAs, with builders noting increased construction costs as the reason for the price growth. This was the second consecutive month that Québec recorded the largest increase in prices among the CMAs surveyed, while both Calgary and Kelowna observed their largest month-over-month increases since May 2022.
The largest month-over-month decreases in May 2023 were reported in Sudbury (-1.2%) and Sherbrooke (-0.7%), with builders noting weak market conditions as the reason for the decline.
New home prices in majority of census metropolitan areas surveyed down year over year
Nationally, new home prices were down 0.6% year over year in May, compared with the 8.4% increase recorded in the same month a year earlier. New home prices have declined since May 2022, as high interest rates impacted activity in the housing market. The Canada Mortgage and Housing Corporation reporting a 64.1% year-over-year increase in unabsorbed inventory (houses built but not sold) in May 2023.
Among the CMAs surveyed, Victoria (-2.7%) recorded the largest year-over-year decline in new home prices in May, followed by St. Catharines–Niagara (-2.4%) and Edmonton (-2.3%). In total, 19 CMAs recorded a year-over-year decrease in new home prices, up from the 14 recorded a month earlier.
The largest year-over-year increases in May 2023 were reported in the Québec (+4.1%), Charlottetown (+1.1%) and St. John's (+1.1%) CMAs.
Chart 2
New house prices rise at the national level
Note to readers
The New Housing Price Index (NHPI) measures changes over time in the selling prices of new residential houses. The prices are those agreed upon between the contractor and the buyer at the time the contract is signed. The detailed specifications for each new house remain the same between two consecutive periods.
The prices collected from builders and included in the index are market selling prices less value-added taxes, such as the federal goods and services tax and the provincial harmonized sales tax.
The survey covers the following dwelling types: new single homes, semi-detached homes and townhomes (row or garden homes). The index is available at the national and provincial levels and for 27 census metropolitan areas (CMAs).
The index is not subject to revision and is not seasonally adjusted.
Products
The Technical Guide for the New Housing Price Index (NHPI) is available. This document provides details on the methodology used to calculate the NHPI.
The New Housing Price Index: Interactive Dashboard, which allows users to visualize statistics on new housing prices, is available.
The Housing Market Indicators dashboard, which provides access to key housing market indicators for Canada, by province and by CMA, is also available.
For more information on the topic of housing, visit the Housing statistics portal.
The video "Producer price indexes" is available on the Statistics Canada Training Institute web page. It introduces Statistics Canada's producer price indexes—what they are, how they are compiled, and what they are used for.
Statistics Canada launched the Producer Price Indexes Portal as part of a suite of portals for prices and price indexes. It provides users with a single point of access to a wide variety of statistics and measures related to producer prices.
Next release
The New Housing Price Index for June will be released on July 21.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).
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