Housing starts trend higher in October
By Adam FreillConstruction Residential
Year-to-date actual starts down, but seasonally adjusted annual rate trend line is showing some signs of growth in challenging economy for housing.
It wasn’t a giant leap, but the trend in housing starts was higher in October compared to September. The trend, a six-month moving average of the monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada, hit 256,280 units, up one per cent from September’s 253,957 units, according to Canada Mortgage and Housing Corporation (CMHC).
The monthly SAAR of total housing starts for all areas in Canada also increased by a per cent in October, landing at 274,681 units. September’s figure came in at 270,669 units.
Total SAAR housing starts were down 43 per cent in Montreal and 24 per cent in Toronto, while Vancouver recorded an increase of 35 per cent, driven by a 40 per cent increase in multi-unit starts.
Actual 2023 year-to-date housing starts were 22 per cent and 37 per cent higher than the same period in 2022 in Toronto and Vancouver, respectively, driven by higher multi-unit starts, but national actual year-to-date housing starts were down seven per cent in centres of 10,000 population and over, due to lower single-detached starts.
“Despite the upward trend in October, driven once again by persistent multi-unit starts activity off-setting declines in single detached starts, actual year-to-date starts are down,” said Bob Dugan, CMHC’s chief economist. “We will need to find innovative ways to deliver more housing and close the supply gap in this challenging economic environment.”