Pace quickened in May, says CMHC
The pace of housing starts in Canada jumped in May, increasing by 10% on a monthly seasonally adjusted annual basis, according to the national housing agency.
Canada Mortgage and Housing Corporation (CMHC) said on Monday that construction commenced on an adjusted 264,506 units last month, up from 241,111 in April, with the six-month trend posting an uptick of 3.8% to 247,830 units.
Actual housing starts also surged in urban centres with a population of 10,000 or more, increasing by 39% to 21,652 units – mainly thanks to a 49% spike in multi-unit starts and a slight increase in the number of single-detached starts (6%).
The total monthly seasonally adjusted annual rate (SAAR) of #HousingStarts for all areas in Canada increased by 10% in May to 264,506 units, up from 241,111 in April. pic.twitter.com/uPR0nvhk3f
— CMHC (@CMHC_ca) June 17, 2024
Montreal registered a noted increase of 200% in total actual housing starts for the month, spurred by a big uptick in single-detached and multi-unit starts, while Toronto was up 26% and Vancouver saw a 13% dip.
May’s figures marked a welcome positive for a construction outlook that’s remained weighed down by high interest rates and borrowing costs in recent times. CMHC chief economist Bob Dugan said they also showed a continuing focus on multi-unit construction for homebuilders in the country’s major centres, but added a word of caution.
“While this is good news for housing supply, we do expect downward pressure on starts through the rest of 2024,” he said in remarks accompanying CMHC’s release.
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