The CMHC on Thursday reported that housing starts across Canada decreased by 23% in May, from 261,357 units in April. Urban starts, defined as those in areas with a population exceeding 10,000, also experienced a downturn, with a 24% decrease to 182,842 units.
Multi-unit urban starts also experienced a substantial decrease of 30%, settling at 139,890 units in May. Conversely, single-detached urban starts displayed a more positive trend, increasing by 6% to 42,952 units. “The decline in housing starts is due to constraints in new construction, including labour shortages and higher construction and borrowing costs, which is considerably affecting multi-unit starts,” explained CMHC Chief economist Bob Dugan.
“Despite this, starts have only declined to the relatively high levels observed prior to 2020,” he added.
Canada’s major Census Metropolitan Areas (CMAs)— Vancouver, Toronto, and Montreal— all exhibited declines in total SAAR housing starts in May. Vancouver witnessed a 45% decrease, Toronto was down by 28%, and Montreal decreased by 35%. Despite this, each city recorded increases in single-detached starts, which were negated by significant decreases in multi-unit starts.
Lastly, the rural areas’ estimated monthly SAAR of housing starts was reported as 19,652 units.
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.
