How fast was the pace of housing starts in November?

The pace of housing starts across all Canadian markets was essentially unchanged in November, with a minuscule monthly drop of 0.2% to 264,159 units from October’s 264,581 units, according to new data from Canada Mortgage and Housing Corporation.

The seasonally adjusted annual rate of total urban starts was also static at 242,644 units in November. Multi-unit urban starts registered a minor 2% uptick to 190,415 units, while single-detached urban starts decelerated by 7% to 52,229 units.

“Both the monthly SAAR and the six-month trend were flat in November,” said Bob Dugan, chief economist of CMHC. “Both Toronto and Vancouver posted increases in total SAAR housing starts in November, with Toronto up 20% and Vancouver up 8%.”

By contrast, Montreal lagged with a significant 62% decrease in multi-unit activity.

This “brought the overall level of housing starts in Canada down to similar levels observed in October,” Dugan said. “Despite this, housing starts activity remains elevated in Canada in 2022.”

What does housing policy need to focus on?

In a recent wide-ranging report, CMHC said that there is a “critical need” for both governments and the private sector to ensure housing availability for the greatest possible number of Canadians.

“As the proportion of income spent on housing is higher for those with low incomes, affordability challenges are also most intense for low-income households,” said Aled ab Iorwerth, deputy chief economist at CMHC.

“Governments must therefore ensure that enough housing supply is available. More social and affordable housing structures will help low-income households directly.”