Canada’s housing sector saw a substantial uptick in June, reversing a months-long declining trend.
According to the CMHC, the standalone monthly SAAR of total housing starts for all areas in Canada experienced a significant 41% increase in June, registering 281,373 units— a significant contrast to May’s 200,018 units. This increase— the largest month-to-month SAAR change in a decade, was mainly attributed to multi-unit starts, which made up about 82% of total starts.
Urban areas with populations over 10,000 saw a 46% rise in total SAAR last month, with 262,815 units recorded. Multi-unit urban starts increased by 59% to 219,914 units, and single-detached urban starts marginally rose 3% to 42,901 units. Rural starts were estimated at about 18,558 units.
“We observed a large increase in the SAAR of housing starts in June which pushed the trend of housing starts upward after consecutive monthly declines since November 2022. Despite this, total year-to-date housing starts for the first half of the year were 8% lower than they were over the same period in 2022 as the high interest rate environment continues to challenge housing starts through increasing borrowing costs,” commented CMHC chief economist Bob Dugan.
June’s total SAAR housing starts showed substantial increases in Vancouver and Toronto, rising 71% and 100% respectively. Together, these two urban centers amounted to 47% of total housing starts in Canada’s urban areas. Montreal also observed an increase in total SAAR housing starts, though it was more moderate at 8%.
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.
