Published On: Monday, 11 December 2017
Construction Booming in Canadian Housing Market
CANADA - The trend in housing starts was 226,270 units in November 2017, compared to 216,642 units in October 2017, according to Canada Mortgage and Housing Corporation (CMHC). This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.
CMHC uses trend measures in order to obtain the most accurate reading of the market, since monthly totals can fluctuate.
Bob Dugan, CMHC’s chief economist, says the trend in housing starts reached its highest level in almost 10 years as of November 2017. This is the second consecutive increase in multiple starts and is driven primarly by construction in Toronto.
- Seasonally adjusted monthly starts in the Vancouver Comparative Market Analysis (CMA) were lower in November mostly due to a pullback in apartment starts as the construction sector remains at full capacity. Fewer multi-family condo and rental projects are getting underway in the City of Vancouver, Richmond, and on the North Shore. However, Burnaby and New Westminster experienced higher multi-family starts so far in 2017, relative to the same period last year.
- The trend in total housing starts declined in November after the tend in both single-detached and multi-family construction dropped from the previous month. However, year to date, actual new home starts in Regina were 32 per cent higher than in the same period of 2016.
This results from a strong surge in residential construction led by a 55 per cent increase in multi-unit production. On balance, improving labour market conditions and continued population growth are supporting new home demand in Regina.
The standalone monthly SAAR of housing starts for all areas in Canada was 252,184 units in November, up from 222,695 units in October. The SAAR of urban starts increased by 14.4 per cent in November to 235,412 units. Multiple urban starts increased by 16.9 per cent to 175,016 units in November. Single-detached urban starts increased by 7.5 per cent, to 60,396 units.
Rural starts were estimated at a seasonally adjusted annual rate of 16,772 units.
Additional details are available through the CMHC Housing Market Information Portal.