The trend in housing starts was higher in October at 256,280 units, up 1% from 253,957 units in September, according to Canada Mortgage and Housing Corporation (CMHC). The trend measure is a six-month moving average of the monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada.
The monthly SAAR of total housing starts for all areas in Canada also increased 1% in October (274,681 units) compared to September (270,669 units), said the CMHC in a report released Thursday.
It said the monthly SAAR of total urban (centres 10,000 population and over) housing starts increased 2%, with 257,357 units recorded. Multi-unit urban starts increased 1% to 209,887 units, while single-detached urban starts increased 9% to 47,470 units. Total SAAR housing starts were down 43% in Montreal and 24% in Toronto, while Vancouver recorded an increase of 35%, driven by a 40% increase in multi-unit starts, added the report.
The rural starts monthly SAAR estimate was 17,324 units.
Bob Dugan
“Despite the upward trend in October, driven once again by persistent multi-unit starts activity off-setting declines in single detached starts, actual year-to-date starts are down. We will need to find innovative ways to deliver more housing and close the supply gap in this challenging economic environment,” said Bob Dugan, CMHC’s Chief Economist.
Rishi Sondhi, Economist with TD Economics, said like clockwork, starts continue to run at a solid pace, lifted by lofty home prices, low levels of unsold inventories and a surge in rental construction.
“And, they are likely to remain elevated in the near-term, consistent with robust permit issuance. For residential investment and GDP growth, October’s modest gain will provide some offset to the decline in home sales reported yesterday,” said Sondhi.
“In our view, past declines in home sales should lead starts lower through 2024. That said, government policy changes meant to spur homebuilding (and help address affordability) should keep starts at lofty levels.”
Residential construction is holding up well, with population growth and government incentives countering the impact of higher borrowing costs and weaker investor demand, added Robert Kavcic, Senior Economist with BMO Economics.
“That said, starts will likely still drift down this year and next due to cyclical pressure, and remain a long way from government supply goals,” he said.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list
About Us
Canada’s Podcast is the number one podcast in Canada for entrepreneurs and business owners. Established in 2016, the podcast network has interviewed over 600 Canadian entrepreneurs from coast-to-coast.
With hosts in each province, entrepreneurs have a local and national format to tell their stories, talk about their journey and provide inspiration for anyone starting their entrepreneurial journey and well- established founders.
The commitment to a grass roots approach has built a loyal audience on all our social channels and YouTube – 500,000+ lifetime YouTube views, 200,000 + audio downloads, 35,000 + average monthly social impressions, 10,000 + engaged social followers and 35,000 newsletter subscribers. Canada’s Podcast is proud to provide a local, national and international presence for Canadian entrepreneurs to build their brand and tell their story.
