The trend in housing starts was flat in August at 244,507 units, up 0.8% from 242,552 units in July, according to Canada Mortgage and Housing Corporation (CMHC) in a report released fon Monday.
Pixabay
The trend measure is a six-month moving average of the monthly SAAR of total housing starts for all areas in Canada, it said.
The monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada decreased 1% in August (252,787 units) compared to July (255,232 units), added the CMHC.
“While both the SAAR and trend in housing starts were flat relative to the previous month, total housing starts are under downward pressure in 2023, except in Ontario and British Columbia. The one bright spot in Canada has been multi-unit starts which have helped offset significant declines recorded in single-detached starts in all provinces this year. Market intelligence suggests multi-unit projects started during the busy summer months were likely financed a few months prior, so the full effect of higher interest rates on construction activity remains to be seen,” said Bob Dugan, CMHC Chief Economist.
The report said the monthly SAAR of total urban (centres 10,000 population and over) housing starts decreased 1%, with 233,075 units recorded in August. Multi-unit urban starts decreased 1% to 191,250 units, while single-detached urban starts increased 2% to 41,825 units in August.
“Total SAAR housing starts were down 12% in Vancouver and 20% in Toronto in August, while Montreal recorded an increase of 41%, driven by a 48% increase in multi-units. The rural starts monthly SAAR estimate was 19,712 units,” added the CMHC.
Rishi Sondhi, Economist with TD Economics, said starts continue to run at a healthy clip that’s roughly 20% above pre-pandemic norms, highlighting the resilience of homebuilding in the face of higher interest rates and labour shortages.
“Past gains in demand are driving homebuilding, with support coming from elevated prices and low levels of unsold inventories. Moving forward, we think that starts will trend lower towards the end of this year and into 2024, as last year’s weakness in home sales filters through to residential construction activity. That said, the federal government and several provinces’ decision to drop the GST/HST on purpose-built rental construction could lift activity going forward,” said Sondhi.
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.
