Housing starts remained flat in November
NEWS PROVIDED BY
Canada Mortgage and Housing Corporation
Dec 15, 2022
OTTAWA, ON, Dec. 15, 2022 /CNW/ - The standalone monthly SAAR of total housing starts for all areas in Canada was flat in November, with a minor decline of 0.2% (264,159 units) compared to October (264,581 units). The SAAR of total urban starts was also flat, with 242,644 units recorded in November. Multi-unit urban starts increased 2% to 190,415 units, while single-detached urban starts fell 7% to 52,229 units.
Rural starts were estimated at a seasonally adjusted annual rate of 21,515 units.
Housing Starts in Canada - All Areas (CNW Group/Canada Mortgage and Housing Corporation)
Bob Dugan, Chief Economist, Canada Mortgage and Housing Corporation (CNW Group/Canada Mortgage and Housing Corporation)
“Both the Monthly SAAR and the six-month trend were flat in November. Among Toronto, Montreal and Vancouver, both Toronto and Vancouver posted increases in total SAAR housing starts in November, with Toronto up 20% and Vancouver up 8%. Montreal was the laggard, with a 62% decrease in multi-unit activity which brought the overall level of housing starts in Canada down to similar levels observed in October. Despite this, housing starts activity remains elevated in Canada in 2022,” said Bob Dugan, CMHC’s Chief Economist.
The trend in housing starts was 274,361 units in November, down 1% from 277,044 units in October, 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 the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a clearer picture of upcoming new housing supply. In some situations, analyzing only SAAR data can be misleading, as the multi-unit segment largely drives the market and can vary significantly from one month to the next.