With home sales on the rise, housing starts are also undergoing notable increases, even despite high interest rates.
On Wednesday, the Canada Mortgage and Housing Corporation (CMHC) reported that national housing starts rose 13% between January and February, from 216,514 units to 243,959 units.
Urban starts increased 16% to a total of 222,663 units, multi-unit starts noted an 18% gain to 173,745 units, and construction intentions of single-detached homes rose 8% to 48,918 units.
“After hitting its lowest level since September 2020, the monthly SAAR of housing starts rebounded in February, while the six-month trend declined slightly. Among Toronto, Montreal and Vancouver, only Toronto recorded an increase in total SAAR housing starts in February, up 55%. Montreal declined 31% and Vancouver declined 43%,” said CMHC chief economist Bob Dugan. “February’s housing starts provided much needed new housing supply nationally, but in order to improve affordability, we need to find innovative ways to deliver more supply and to keep building at a higher pace,” he added.
Information for this briefing was found via the 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.