Market Overview

Canadian Housing Starts Trend Increased in July

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OTTAWA, Aug. 9, 2017 /CNW/ - The trend in housing starts was 217,550 units in July 2017, compared to 215,175 units in June 2017, according to Canada Mortgage and Housing Corporation (CMHC). This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.

Logo: CMHC (CNW Group/Canada Mortgage and Housing Corporation)

"In July, Canada's pace in housing construction ramped up for a seventh consecutive month," said Bob Dugan, CMHC's chief economist. "British Columbia and Alberta were the main contributors to the higher trend in housing starts. While BC's construction coincides with near-record low completed and unsold units in the past few months, Alberta's inventory of new unsold homes is ramping up, highlighting the need for managing inventories."

Monthly Highlights

Toronto

Total housing starts in the Toronto Census Metropolitan Area trended lower in July. Lower trending apartment and single-detached starts were mainly responsible for the decline. Overall, total housing starts were still trending close to the average level seen so far this year. Strong increases in semi-detached and town home starts pointed to affordability concerns driving demand for less expensive housing types.

Vancouver

Vancouver CMA housing starts were up slightly in July due to the construction of more townhomes and apartments getting underway. The largest increase in construction activity occurred in Burnaby, New Westminster and Coquitlam, as the relative affordability of more modestly priced townhomes and apartments in these communities supported consumer demand. The number of units under construction in the Vancouver CMA remains near record highs, and developers will be keeping an eye on market conditions as these projects are completed in the coming year.

Calgary

After a slow start, the trend in new home construction this year has increased, moving closer in line with historical averages. Multiple starts in particular have been strong in recent months, including July, despite inventories sitting at near record highs. If the current pace of production does not ease, there is the possibility that inventories will stay elevated for an extended period of time.

Ottawa

July housing starts trended up on the back of strong multiple construction. Multiple starts this year have been driven by the rise in rental apartment starts, which to July reached about 1.5 times their level for 2016 as a whole. Builders are diversifying high-rise product as a substantial number of completed condominium apartment units remain unsold. In addition, an ageing rental stock, and robust rental demand are contributing to increased building activity for rental units.

Gatineau

With construction getting under way on several large rental projects at the same time, housing starts in the Gatineau area were up considerably in July. The rising demand, supported in part by stronger employment, will help residential construction stay on an upward trend over the coming months.

London

Single-detached starts in both the City of London and London CMA posted the highest levels for the month of July since 2007. The continued elevated number of single-detached starts is driven largely by demand spillover from the resale market, which has seen a dramatic increase in the sales of homes priced at $500,000 and over. Also, the price gap between single-detached homes in London and comparable homes in Toronto has continued to remain wide, making London an attractive destination for buyers from the Greater Toronto Area.

Greater Sudbury

Housing starts in Greater Sudbury trended lower in July, due to a decline in both single detached and multiple starts. The trend dipped for the seventh consecutive month, reflecting declines in full-time employment and a healthy supply in the resale market.

Nova Scotia

Construction in both the singles and multiples markets in Halifax continues to show strength in July with year-over-year starts increasing by 15% and 31%, respectively. Year-to-date, the singles market has witnessed the strongest number of starts since 2013, while the multiples market continues to be a driver of residential construction, especially on the Halifax Peninsula and Mainland North regions.

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 more complete picture of Canada's housing market. In some situations analyzing only SAAR data can be misleading, as they are largely driven by the multi-unit segment of the market which can vary significantly from one month to the next.

The standalone monthly SAAR of housing starts for all areas in Canada was 222,324 units in July, up from 212,948 units in June. The SAAR of urban starts increased by 5.5 per cent in July to 206,122 units. Multiple urban starts increased by 10.4 per cent to 141,950 units in July and single-detached urban starts decreased by 3.9 per cent, to 64,172 units.

Rural starts were estimated at a seasonally adjusted annual rate of 16,202 units.

Preliminary Housing Starts data are also available in English and French through our website and through CMHC's Housing Market Information Portal. Our analysts are also available to provide further insight into their respective markets.

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

For more information, follow us on Twitter, YouTube, LinkedIn and Facebook.

Additional data is available upon request. 

 


Preliminary Housing Start Data in Centres 10,000 Population and Over



Single-Detached

All Others

Total



July 2016

July 2017

%

July 2016

July 2017

%

July 2016

July 2017

%

Provinces (10,000+)










N.-L.


76

95

25

19

62

226

95

157

65

P.E.I.   


16

31

94

15

47

213

31

78

152

N.S.   


129

146

13

205

238

16

334

384

15

N.B.   


72

122

69

26

74

185

98

196

100

Atlantic


293

394

34

265

421

59

558

815

46

Qc


590

662

12

1,896

2,587

36

2,486

3,249

31

Ont.   


2,779

2,691

-3

4,195

4,482

7

6,974

7,173

3

Man.   


199

266

34

434

133

-69

633

399

-37

Sask.   


203

215

6

223

203

-9

426

418

-2

Alta.   


916

1,285

40

1,223

1,561

28

2,139

2,846

33

Prairies


1,318

1,766

34

1,880

1,897

1

3,198

3,663

15

B.C.   


1,011

998

-1

2,270

2,922

29

3,281

3,920

19

Canada (10,000+)

5,991

6,511

9

10,506

12,309

17

16,497

18,820

14

Metropolitan Areas










Abbotsford-Mission

52

24

-54

34

157

362

86

181

110

Barrie


92

101

10

126

1

-99

218

102

-53

Belleville


**

39

##

**

36

##

**

75

##

Brantford


9

31

244

24

63

163

33

94

185

Calgary


327

430

31

764

716

-6

1,091

1,146

5

Edmonton


387

498

29

378

716

89

765

1,214

59

Greater Sudbury

29

28

-3

34

2

-94

63

30

-52

Guelph


29

18

-38

4

8

100

33

26

-21

Halifax


72

83

15

148

194

31

220

277

26

Hamilton


87

52

-40

293

204

-30

380

256

-33

Kelowna


52

87

67

143

41

-71

195

128

-34

Kingston


43

42

-2

18

18

-

61

60

-2

Kitchener-Cambridge-Waterloo

133

69

-48

529

304

-43

662

373

-44

Lethbridge


**

45

##

**

18

##

**

63

##

London


138

197

43

41

38

-7

179

235

31

Moncton


30

37

23

21

17

-19

51

54

6

Montréal


261

275

5

1,090

1,553

42

1,351

1,828

35

Oshawa


92

100

9

81

9

-89

173

109

-37

Ottawa-Gatineau

177

276

56

392

1,015

159

569

1,291

127


Gatineau


17

62

265

141

427

203

158

489

209


Ottawa


160

214

34

251

588

134

411

802

95

Peterborough


60

32

-47

0

15

##

60

47

-22

Québec


64

118

84

428

364

-15

492

482

-2

Regina


58

84

45

142

105

-26

200

189

-6

Saguenay


24

16

-33

10

10

-

34

26

-24

St. Catharines-Niagara

207

155

-25

65

94

45

272

249

-8

Saint John


12

26

117

2

1

-50

14

27

93

St. John's


58

79

36

15

60

300

73

139

90

Saskatoon


122

111

-9

65

89

37

187

200

7

Sherbrooke


26

12

-54

38

36

-5

64

48

-25

Thunder Bay


23

16

-30

4

2

-50

27

18

-33

Toronto


1,140

928

-19

2,359

2,864

21

3,499

3,792

8

Trois-Rivières


12

27

125

40

34

-15

52

61

17

Vancouver


495

492

-1

1,618

1,906

18

2,113

2,398

13

Victoria


89

84

-6

215

611

184

304

695

129

Windsor


78

81

4

56

41

-27

134

122

-9

Winnipeg


174

207

19

391

83

-79

565

290

-49

Total


4,652

4,900

5

9,568

11,425

19

14,220

16,325

15

Data for 2016 based on 2011 Census Definitions.









Data for 2017 based on 2016 Census Definitions.









Source:  Market Analysis Centre, CMHC




















** Belleville and Lethbridge were not metropolitan areas in 2016.








## not calculable / extreme value










 


Preliminary Housing Start Data - Seasonally Adjusted at Annual Rates (SAAR)



Single-Detached

All Others

Total



June 2017

July 2017

%

June 2017

July 2017

%

June 2017

July 2017

%

Provinces (10,000+)










N.L.


549

756

38

506

606

20

1,055

1,362

29

P.E.I.   


235

229

-3

924

564

-39

1,159

793

-32

N.S.   


1,355

1,278

-6

655

2,699

312

2,010

3,977

98

N.B.   


770

756

-2

634

801

26

1,404

1,557

11

Qc  


6,287

6,439

2

29,766

29,392

-1

36,053

35,831

-1

Ont.   


27,736

25,720

-7

47,738

50,551

6

75,474

76,271

1

Man.   


2,905

2,562

-12

3,252

1,596

-51

6,157

4,158

-32

Sask.   


1,847

2,181

18

2,520

2,436

-3

4,367

4,617

6

Alta.   


14,139

13,597

-4

15,364

18,362

20

29,503

31,959

8

B.C.   


10,945

10,654

-3

27,162

34,943

29

38,107

45,597

20

Canada (10,000+)

66,768

64,172

-4

128,521

141,950

10

195,289

206,122

6

Canada (All Areas)

79,883

76,780

-4

133,067

145,543

9

212,948

222,324

4

Metropolitan Areas










Abbotsford-Mission

427

265

-38

2,796

1,884

-33

3,223

2,149

-33

Barrie


803

760

-5

1,032

12

-99

1,835

772

-58

Belleville


423

314

-26

24

432

##

447

746

67

Brantford


61

318

421

540

756

40

601

1,074

79

Calgary


4,903

4,771

-3

11,340

8,592

-24

16,243

13,363

-18

Edmonton


5,963

5,407

-9

3,132

8,592

174

9,095

13,999

54

Greater Sudbury

110

148

35

168

24

-86

278

172

-38

Guelph


204

139

-32

348

96

-72

552

235

-57

Halifax


891

761

-15

144

2,328

##

1,035

3,089

198

Hamilton


882

461

-48

1,260

2,448

94

2,142

2,909

36

Kelowna


972

1,038

7

1,608

492

-69

2,580

1,530

-41

Kingston


297

371

25

2,412

216

-91

2,709

587

-78

Kitchener-Cambridge-Waterloo

784

693

-12

1,608

3,648

127

2,392

4,341

81

Lethbridge


456

480

5

204

216

6

660

696

5

London


1,818

1,973

9

4,032

456

-89

5,850

2,429

-58

Moncton


283

242

-14

360

204

-43

643

446

-31

Montréal


2,682

2,748

2

13,384

18,546

39

16,066

21,294

33

Oshawa


1,136

805

-29

5,256

108

-98

6,392

913

-86

Ottawa-Gatineau

2,556

2,658

4

4,800

12,180

154

7,356

14,838

102


Gatineau


76

570

##

876

5,124

485

952

5,694

498


Ottawa


2,480

2,088

-16

3,924

7,056

80

6,404

9,144

43

Peterborough


288

258

-10

132

180

36

420

438

4

Québec


957

1,246

30

13,416

4,368

-67

14,373

5,614

-61

Regina


599

919

53

1,404

1,260

-10

2,003

2,179

9

Saguenay


117

129

10

96

120

25

213

249

17

St. Catharines-Niagara

1,341

1,265

-6

1,008

1,128

12

2,349

2,393

2

Saint John


132

201

52

0

12

##

132

213

61

St. John's


396

694

75

468

720

54

864

1,414

64

Saskatoon


1,080

1,099

2

948

1,068

13

2,028

2,167

7

Sherbrooke


344

136

-60

552

432

-22

896

568

-37

Thunder Bay


108

96

-11

288

24

-92

396

120

-70

Toronto


10,557

9,673

-8

25,296

34,368

36

35,853

44,041

23

Trois-Rivières


204

291

43

372

408

10

576

699

21

Vancouver


4,843

5,116

6

19,020

22,872

20

23,863

27,988

17

Victoria


848

928

9

2,328

7,332

215

3,176

8,260

160

Windsor


893

806

-10

600

492

-18

1,493

1,298

-13

Winnipeg


2,492

2,069

-17

3,180

996

-69

5,672

3,065

-46

Data based on 2016 Census Definitions.









Source:  Market Analysis Centre, CMHC









## not calculable / extreme value











 

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

SOURCE Canada Mortgage and Housing Corporation

View original content with multimedia: http://www.newswire.ca/en/releases/archive/August2017/09/c7816.html

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