The Canadian housing market experienced a surge in activity in July, as evidenced by a 16% increase in the seasonally adjusted annual rate (SAAR) of housing starts compared to June, according to Canada Mortgage and Housing Corporation (CMHC). This upward trend was primarily driven by a notable rise in multi-unit construction, particularly in cities like Calgary and Ottawa.
The six-month trend in housing starts also displayed growth, increasing by 3.2% from June to July. This measure provides a more stable picture of housing supply by averaging the SAAR over a six-month period. In Canadian urban centers with a population of 10,000 or more, actual housing starts from January to July 2024 were 7.5% higher compared to the same period in 2023, indicating a positive year-over-year trend.
CMHC’s Chief Economist, Bob Dugan, highlighted the importance of multi-unit construction in addressing the ongoing housing shortage. Developers are actively focusing on this sector in major urban centers to meet the growing demand. Specific regional data revealed that Montreal experienced a 47% increase in actual housing starts year-to-date, demonstrating recovery from a historically low construction year in 2023. However, Vancouver saw a decline of 18% in actual starts, despite 2023 being a record year for new home construction in the region. Toronto also showed a decrease in actual starts, dropping by 9.5% compared to the same period in 2023.
CMHC uses the trend measure alongside the monthly SAAR to gain a clearer understanding of the housing market’s trajectory. This approach helps to mitigate potential misinterpretations arising from significant month-to-month fluctuations in the multi-unit segment, which plays a major role in driving the overall market.
As a trusted source of housing information, CMHC provides unbiased data, research, and market analysis to address knowledge gaps and deepen the understanding of complex housing issues. This valuable information serves to inform policy decisions and promote a stable housing market and financial system. CMHC also plays a crucial role in providing support for Canadians in housing need.
The data on housing starts provides valuable insights into the monthly, quarterly, and annual activity in the new home market. This information, collected through CMHC’s Starts and Completions and Market Absorption surveys, helps to assess upcoming housing supply and informs various housing reports. CMHC’s commitment to data collection, analysis, and research ensures a comprehensive understanding of the Canadian housing market.
