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Canadian Housing Starts Increased In April

Housing Starts in Canada - All Areas (CNW Group/Canada Mortgage and Housing Corporation)

The standalone monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada increased 22% in April (261,559 units) compared to March (213,780 units) according to Canada Mortgage and Housing Corporation (CMHC).

The monthly SAAR of total urban starts (centres 10,000 population and over) increased 26%, with 241,585 units recorded in April. Multi-unit urban starts increased 33% to 201,621 units, while single-detached urban starts decreased 2% to 39,964 units.

The VancouverToronto, and Montreal CMAs all recorded an increase in total SAAR housing starts in April, with Vancouver up 36%, Toronto up 54%, and Montreal up 43%. Both Toronto and Montreal recorded declines in single-detached starts that were offset by large increases in multi-unit starts, while Vancouver posted increases in both segments.

The rural starts monthly SAAR estimate was 19,974 units.

The trend in housing starts was 240,403 units in April, down 0.2% from 240,876 units in March. The trend measure is a six-month moving average of the monthly SAAR of total housing starts for all areas in Canada.

While both the SAAR of housing starts and the trend have returned to levels observed before the pandemic, housing starts are expected to drop significantly in 2023, before seeing some recovery in 2024 and 2025, according to our latest forecast. The expected decline is due to constraints in new construction, including labour shortages, as well as higher construction and borrowing costs for housing developers,” said Aled ab Iorwerth, CMHC’s Deputy Chief Economist.

Key Facts:

As a trusted source of housing information, CMHC provides unbiased housing-related data, research, and market information to help close knowledge gaps, and deepen understanding of complex housing issues to inform future policy decisions. Housing starts facilitate the analysis of monthly, quarterly, and year-over-year activity in the new home market.  The data they collect as part of their Starts and Completions and Market Absorption surveys helps obtain a clearer picture of upcoming new housing supply and is used as part of their various housing reports.

For more information, visit their website at https://www.cmhc-schl.gc.ca/en.

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