Canadian housing starts trend higher in June
By Adam FreillConstruction Residential
Trend rises despite slight monthly decline; starts continue to post at levels well above historic average levels.
According to the latest figures compiled by Canada Mortgage and Housing Corporation (CMHC), the trend in housing starts came in at 258,295 units in June, up from 252,444 units in May. The trend measure, a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts, didn’t quite match the standalone monthly SAAR, which saw a decrease of three per cent from May, coming in at 273,841 units for all areas in Canada in June, but housing starts remain historically high.
“The monthly SAAR was lower in June compared to May; however, the level of housing starts activity in Canada remains historically high and well above 200,000 units since 2020,” said Bob Dugan, CMHC’s Chief Economist. “The decrease in monthly SAAR housing starts in Canada’s urban areas was driven by lower single-detached starts in June. Vancouver, Toronto and Montreal all recorded higher total SAAR starts, driven by higher multi-unit starts except for Montreal where single-detached starts posted a higher increase.”
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.