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News » Canada » Latest figures show rising trend in Canadian housing starts » published 12 Dec 2017

Latest figures show rising trend in Canadian housing starts

The six-month average of housing starts rose in November to its highest level in almost 10 years.

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The rise was due to a notable increase in the multiple segment. The shift from single-detached to multiple housing starts has been driven by millennials and first-time buyers seeking lower priced alternatives in an uncertain economic environment.

This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts. November’s figure was 226,270 units, up from October’s 216,642 starts.

 “The trend in housing starts reached its highest level in almost 10 years this November, reflecting a second consecutive increase in multiple starts,” said Canada Mortgage & Housing Corporation (CMHC) chief economist Bob Dugan. “This largely reflects construction of multiple units in Toronto, where evidence of overbuilding is low due to the decreasing inventory of completed and unabsorbed multiple units and strong demand.”

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of Canada’s housing market. In some situations analyzing only SAAR data can be misleading, as they are largely driven by the multi-unit segment of the market which can vary significantly from one month to the next.

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% in November to 235,412 units. Multiple urban starts increased by 16.9% to 175,016 units in November. Single-detached urban starts increased by 7.5% to 60,396 units.

Rural starts were estimated at a seasonally adjusted annual rate of 16,772 units.



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This article was published on 12 Dec 2017 (last updated on 18 Dec 2017).

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