As restrictions are gradually lifted Canadians return to work following the height of the coronavirus pandemic, preliminary housing starts data suggests the pace of housing construction is showing a consecutive increase.
Preliminary data released by the Canada Mortgage and Housing Corp suggests the month of June has saw a steady increasing pace of multi-family projects. In May, the seasonally adjusted annual rate of housing starts was at 195,453 units, but by June 2020 the figure increased to 211,681 units. Meanwhile, the seasonally adjusted annual rate of housing starts recorded a six-month moving average increase of 197,063 units in May, to 199,655 units in June.
Refinitiv, the financial markets data company, had only anticipated the annual pace to remain around 198,000 housing starts in June, so the incoming data suggests the Canadian economy is perhaps faring better than anticipated. The pace of multi-unit housing starts in urban areas, such as condos and apartments, increased by 13% to a total of 154,602 units, meanwhile single detached housing starts declined by 4.5% to 42,073 units.
Information for this briefing was found via Bloomberg and the Canada Mortgage and Housing Corporation. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.