Canadian Housing Starts Continue on Positive Trend for 2 Consecutive Months Despite Pandemic
It appears that various sectors of Canada’s economy are showing signs of a rebound following the easing of coronavirus restrictions, as the housing starts trend continues on a positive incline.
According to the latest data released by the Canada Mortgage and Housing Corporation (CMHC), the month of July saw housing starts increase by 4,598 units to a total of 204,376. The CMHC measures the trend alongside the six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.
The SAAR across Canada for the month of July came in at 245,604 units, which translates to an increase of approximately 15.8% from the month prior. More specifically, the SAAR for urban starts was at 231,995 units, which is a 17.4% increase, while multiple urban starts and single-detached urban starts rose by 18.8% and 12.3% respectively. In the meantime, rural starts had an estimated SAAR of 13,609 units in July.
CMHC chief economist Bob Dugan attributes the positive trend for a second month in a row to the increase in multi-family starts across several significant regions, including urban areas such as Vancouver and Toronto, as well as the oil-rich regions of the Prairies. After much of Canada’s economy went into lockdown during the spring in response to the coronavirus pandemic, the positive increase in housing starts for the months of June and July indicate that the trend is coming in line with the long-run average level.
Information for this briefing was found via CMHC. 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.
