There was a noticeable downturn in the seasonally adjusted annual rate (SAAR) of housing starts across Canada in March, with the total falling 7% to 242,195 units from 260,047 units in February, as reported by the Canada Mortgage and Housing Corporation. This decline is part of a broader cooling trend observed over the last six months, with the average SAAR decreasing 1.6% from February’s 247,971 units to 243,957 units in March.
Despite this general slowdown, the actual number of housing starts in urban areas—defined as cities with over 10,000 residents—told a different story, showing a robust increase of 16% year-over-year in March. This growth was largely driven by a 19% surge in multi-unit residential buildings and a slight 2% rise in single-detached homes.
READ: Housing Construction Booms: February Starts Jump by 14%
Regionally, the dynamics varied significantly. Vancouver saw a robust 27% increase in total SAAR housing starts, largely due to a rise in multi-unit projects. In contrast, Toronto and Montreal experienced decreases in their overall housing starts by 26% and 5%, respectively, mainly due to declines in their multi-unit sectors.
Urban housing starts overall decreased by 7%, with a sharper 8% drop in multi-unit developments and a 4% decline in single-detached homes. Rural areas saw an estimated 21,452 units started on a SAAR basis.
Information for this briefing was found via CMHC and the sources mentioned. 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.
