Canada witnessed an uptick in housing starts for September, with the trend showing 254,006 units, a 3.9% increase from 244,511 units in August, according to the Canada Mortgage and Housing Corporation.
The monthly seasonally adjusted annual rate of total housing starts across Canada witnessed 8% growth in September, registering 270,466 units, a notable increase from August’s 250,383 units. Additionally, urban centres, specifically those with populations exceeding 10,000, experienced a 9% growth in housing starts. This was predominantly driven by a 10% ascent in multi-unit starts during the month.
Interestingly, while Montreal and Toronto experienced significant increases in housing starts at 98% and 20% respectively, Vancouver recorded a 17% decline.
Bob Dugan, CMHC’s Chief Economist, commented, “Despite the higher interest rate environment, multi-unit starts activity has remained strong, mirroring 2022 levels. This has counteracted declines in single-detached starts.” He noted that the current interest rates haven’t deterred multi-unit construction activity as previously anticipated.
Zooming out, 2023’s year-to-date housing starts have already outstripped 2022’s numbers, showcasing a 22% growth in Toronto and an impressive 37% in Vancouver. However, on a national scale, year-over-year starts for September witnessed an 8% dip, largely attributed to a reduction in single-detached starts.
Information for this story was found via the CMHC. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
