Canadian Housing Starts Trend Increased in June

OTTAWA, July 11, 2017 /CNW/ - The trend in housing starts was 215,459 units in June 2017, compared to 214,570 units in May 2017, according to Canada Mortgage and Housing Corporation (CMHC). This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.

"The trend in housing starts for Canada reached its highest level in almost five years", said Bob Dugan, CMHC's chief economist. "So far this year, all regions are on pace to surpass construction levels from 2016 except for British Columbia, where starts have declined year-to-date after reaching near-record levels last summer."

Monthly Highlights

Prince Edward Island

Prince Edwards Island's housing starts continued to trend up during the month of June. Starts of single family homes have been particularly strong the first six months of this year, up 97 per cent compared the same period in 2016.  

Québec CMA

In June, housing starts trended higher in Québec as a result of the construction of a large condominium project. However, in the conventional rental housing segment, year-to-date results show a 22 per cent decrease in housing starts compared to the same period in 2016. This decrease can be explained, in part, by the period of strong activity observed in this segment in 2015 and 2016 and the rise in the vacancy rate.

Toronto

The total housing starts trend in the Toronto CMA remained virtually unchanged in June compared to the previous month. The pace of new home construction has been stable across all housing forms. A minor decline in the single-detached starts trend was offset by gains in the multi-family sector. Glancing further back, construction of ground-oriented homes, which includes single-detached, semis and town homes, have gained momentum throughout 2017, as housing starts so far this year have reached a five-year high. Limited resale supply in combination with strong home buying demand in Toronto have led more buyers to purchase pre-construction units.

Barrie

Higher trending single-detached and row starts have pushed Barrie's total housing starts up for the second month in June. Demand for new homes continued to fuel home starts in the town of Innisfil instead of the land-scarce city of Barrie. The town of Innisfil has become the prime location for the construction of low and medium-density homes in the Barrie CMA.

Oshawa

Oshawa CMA had a record level of seasonally adjusted starts in June 2017, the pace of construction being nearly three times higher than the average seen over the past three years. While all housing types saw increases in June, the row and apartment segments were the clear leaders. Price weary buyers from the Toronto CMA continue to fuel demand for new homes in Oshawa.

Fort McMurray/Wood Buffalo

Fort McMurray has experienced strong rebuilding activity after the wildfires last May. Since January, 785 housing starts have been recorded, twice as many as in the last two years combined. The majority of these new starts have been replacement single-detached homes.

Victoria

Housing starts trended higher in the Victoria CMA last month as new rental projects were initiated in Langford. Total starts for 2017 remain elevated but reduced from the record-setting pace last year. Multi-unit starts have been sluggish to date compared to singles, which are slightly above expectation. However, multi-unit construction remains elevated at 30 per cent above the five-year average. Developers will be keeping an eye on how the market responds to a higher completion rate going forward.  

Vancouver

Vancouver CMA housing starts trended downwards in June, driven by a decrease in apartment starts. In the first six months of 2017, there were 880 ownership apartment starts in the City Vancouver, compared with 3,290 in the first half of 2016.  Given the strong housing starts activity in the past year and the record number of units now under construction, it is not surprising to see starts trend downward according to industry capacity.

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of Canada's housing market. In some situations analyzing only SAAR data can be misleading, as they are largely driven by the multi-unit segment of the market which can vary significantly from one month to the next.

The standalone monthly SAAR of housing starts for all areas in Canada was 212,695 units in June, up from 194,955 units in May. The SAAR of urban starts increased by 9.6 per cent in June to 194,773 units. Multiple urban starts increased by 9.4 per cent to 127,944 units in June and single-detached urban starts increased by 10.1 per cent, to 66,829 units.

Rural starts were estimated at a seasonally adjusted annual rate of 17,922 units.

Preliminary Housing Starts data are also available in English and French through our website and through CMHC's Housing Market Information Portal. Our analysts are also available to provide further insight into their respective markets.

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

For more information, follow us on Twitter, YouTube, LinkedIn and Facebook.

Additional data is available upon request. 


Preliminary Housing Start Data in Centres 10,000 Population and Over



Single-Detached

All Others

Total





June 2016

June 2017

%

June 2016

June 2017

%

June 2016

June 2017

%

Provinces (10,000+)










N.-L.


90

71

-21

27

43

59

117

114

-3

P.E.I.   


13

29

123

14

77

450

27

106

293

N.S.   


130

147

13

248

53

-79

378

200

-47

N.B.   


82

106

29

33

63

91

115

169

47

Atlantic


315

353

12

322

236

-27

637

589

-8

Qc


819

740

-10

2,404

2,708

13

3,223

3,448

7

Ont.   


3,062

3,114

2

4,930

4,204

-15

7,992

7,318

-8

Man.   


170

259

52

203

271

33

373

530

42

Sask.   


198

204

3

185

210

14

383

414

8

Alta.   


844

1,277

51

1,103

1,336

21

1,947

2,613

34

Prairies


1,212

1,740

44

1,491

1,817

22

2,703

3,557

32

B.C.   


881

1,001

14

3,213

2,204

-31

4,094

3,205

-22

Canada (10,000+)

6,289

6,948

10

12,360

11,169

-10

18,649

18,117

-3

Metropolitan Areas










Abbotsford-Mission

42

34

-19

64

233

264

106

267

152

Barrie


137

125

-9

135

86

-36

272

211

-22

Belleville


**

48

##

**

2

##

**

50

##

Brantford


14

4

-71

5

45

##

19

49

158

Calgary


339

445

31

491

945

92

830

1,390

67

Edmonton


335

570

70

541

261

-52

876

831

-5

Greater Sudbury

33

17

-48

5

14

180

38

31

-18

Guelph


29

31

7

161

29

-82

190

60

-68

Halifax


66

98

48

219

12

-95

285

110

-61

Hamilton


84

101

20

235

105

-55

319

206

-35

Kelowna


62

77

24

55

134

144

117

211

80

Kingston


38

39

3

12

201

##

50

240

380

Kitchener-Cambridge-Waterloo

180

93

-48

244

150

-39

424

243

-43

Lethbridge


**

41

##

**

17

##

**

58

##

London


175

229

31

338

336

-1

513

565

10

Moncton


37

42

14

20

30

50

57

72

26

Montréal


304

314

3

1,172

1,121

-4

1,476

1,435

-3

Oshawa


249

160

-36

189

438

132

438

598

37

Ottawa-Gatineau

292

318

9

323

401

24

615

719

17

Gatineau


38

8

-79

52

73

40

90

81

-10

Ottawa


254

310

22

271

328

21

525

638

22

Peterborough


47

43

-9

50

11

-78

97

54

-44

Québec


84

107

27

467

1,118

139

551

1,225

122

Regina


90

68

-24

80

117

46

170

185

9

Saguenay


25

18

-28

12

8

-33

37

26

-30

St. Catharines-Niagara

149

124

-17

61

84

38

210

208

-1

Saint John


21

20

-5

0

0

-

21

20

-5

St. John's


70

51

-27

23

39

70

93

90

-3

Saskatoon


95

119

25

87

79

-9

182

198

9

Sherbrooke


49

59

20

41

46

12

90

105

17

Thunder Bay


29

21

-28

12

24

100

41

45

10

Toronto


1,086

1,059

-2

2,962

2,108

-29

4,048

3,167

-22

Trois-Rivières


37

31

-16

56

31

-45

93

62

-33

Vancouver


462

454

-2

2,535

1,515

-40

2,997

1,969

-34

Victoria


81

85

5

398

194

-51

479

279

-42

Windsor


118

108

-8

45

50

11

163

158

-3

Winnipeg


153

231

51

191

265

39

344

496

44

Total


5,012

5,384

7

11,229

10,249

-9

16,241

15,633

-4

Data for 2016 based on 2011 Census Definitions.









Data for 2017 based on 2016 Census Definitions.









Source:  Market Analysis Centre, CMHC









 


Preliminary Housing Start Data - Seasonally Adjusted at Annual Rates (SAAR)



Single-Detached

All Others

Total



May 2017

June 2017

%

May 2017

June 2017

%

May 2017

June 2017

%

Provinces (10,000+)










N.L.


477

532

12

196

492

151

673

1,024

52

P.E.I.   


337

240

-29

216

924

328

553

1,164

110

N.S.   


1,185

1,340

13

2,582

657

-75

3,767

1,997

-47

N.B.   


721

755

5

948

641

-32

1,669

1,396

-16

Qc  


5,772

6,098

6

22,014

29,938

36

27,786

36,036

30

Ont.   


22,495

27,901

24

29,291

48,019

64

51,786

75,920

47

Man.   


3,182

2,943

-8

6,972

3,252

-53

10,154

6,195

-39

Sask.   


1,810

1,805

0

2,568

2,520

-2

4,378

4,325

-1

Alta.   


13,523

14,225

5

17,595

15,212

-14

31,118

29,437

-5

B.C.   


11,222

10,990

-2

34,616

26,289

-24

45,838

37,279

-19

Canada (10,000+)

60,724

66,829

10

116,998

127,944

9

177,722

194,773

10

Canada (All Areas)

73,408

80,080

9

121,546

132,617

9

194,955

212,695

9

Metropolitan Areas










Abbotsford-Mission

521

447

-14

1,068

2,796

162

1,589

3,243

104

Barrie


1,012

810

-20

900

1,032

15

1,912

1,842

-4

Belleville


359

430

20

264

24

-91

623

454

-27

Brantford


368

60

-84

816

540

-34

1,184

600

-49

Calgary


4,783

4,995

4

7,056

11,340

61

11,839

16,335

38

Edmonton


5,832

6,029

3

9,636

3,132

-67

15,468

9,161

-41

Greater Sudbury

163

109

-33

0

168

##

163

277

70

Guelph


337

201

-40

252

348

38

589

549

-7

Halifax


689

889

29

2,148

144

-93

2,837

1,033

-64

Hamilton


260

858

230

1,524

1,260

-17

1,784

2,118

19

Kelowna


1,077

995

-8

4,500

1,608

-64

5,577

2,603

-53

Kingston


311

290

-7

204

2,412

##

515

2,702

425

Kitchener-Cambridge-Waterloo

1,371

767

-44

2,208

1,800

-18

3,579

2,567

-28

Lethbridge


497

460

-7

168

204

21

665

664

0

London


1,407

1,784

27

1,140

4,032

254

2,547

5,816

128

Moncton


253

281

11

1,080

360

-67

1,333

641

-52

Montréal


2,789

2,702

-3

17,996

13,376

-26

20,785

16,078

-23

Oshawa


708

1,202

70

240

5,256

##

948

6,458

##

Ottawa-Gatineau

2,162

2,663

23

6,264

4,812

-23

8,426

7,475

-11

Gatineau


355

84

-76

1,104

876

-21

1,459

960

-34

Ottawa


1,807

2,579

43

5,160

3,936

-24

6,967

6,515

-6

Peterborough

263

294

12

96

132

38

359

426

19

Québec


662

903

36

3,504

13,416

283

4,166

14,319

244

Regina


693

591

-15

2,280

1,404

-38

2,973

1,995

-33

Saguenay


183

119

-35

348

96

-72

531

215

-60

St. Catharines-Niagara

1,347

1,351

0

768

1,008

31

2,115

2,359

12

Saint John


154

128

-17

0

0

-

154

128

-17

St. John's


335

389

16

156

468

200

491

857

75

Saskatoon


984

1,079

10

144

948

##

1,128

2,027

80

Sherbrooke


317

350

10

1,020

552

-46

1,337

902

-33

Thunder Bay


105

111

6

528

288

-45

633

399

-37

Toronto


6,953

10,688

54

15,552

25,296

63

22,505

35,984

60

Trois-Rivières

135

199

47

432

372

-14

567

571

1

Vancouver


4,869

4,798

-1

24,252

18,180

-25

29,121

22,978

-21

Victoria


966

851

-12

1,260

2,328

85

2,226

3,179

43

Windsor


830

954

15

252

600

138

1,082

1,554

44

Winnipeg


2,628

2,538

-3

5,856

3,180

-46

8,484

5,718

-33

Data based on 2016 Census Definitions.









Source:  Market Analysis Centre, CMHC









## not calculable / extreme value











 

SOURCE Canada Mortgage and Housing Corporation

For further information: Information on This Release: CMHC media relations, National, Jonathan Rotondo, CMHC Media Relations, 613-748-2734, jrotondo@cmhc-schl.gc.ca ; Atlantic, Katherine LeBlanc, 902-789-5709, krleblan@cmhc-schl.gc.ca; Quebec, Étienne Campeau, 514-496-5458, ecampeau@schl.ca ; Ontario, Angelina Ritacco, 416-218-3320, aritacco@cmhc-schl.gc.ca; Prairies, Courtney Gillis, 403-515-3012, cgillis@cmhc-schl.gc.ca ; British Columbia, Jeanette Wilkinson, 604-737-4007, jpwilkin@cmhc.ca

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