Annual housing starts plummet in October: CMHC report
Housing starts fell 3 per cent on an annual basis in October, with a corresponding drop in the six-month trend, according to a new report from the Canada Mortgage and Housing Corporation.
Housing starts fell 3 per cent on an annual basis in October, with a corresponding drop in the six-month trend, according to a new report from the Canada Mortgage and Housing Corporation.
The decline was driven by “significantly lower monthly starts in Ontario and British Columbia.” Housing starts in Ontario fell by 35 per cent compared to last year, while B.C. experienced a 22 per cent drop over the same period.
“However, higher starts in markets like Montréal, Calgary, and Edmonton continue to keep national year-to-date elevated compared to the same period last year,” said Tania Bourassa-Ochoa, CMHC’s Deputy Chief Economist on Tuesday.
“While these results are generally reflective of investment decisions made months or even years ago, they also highlight persistent and significant regional contrasts in housing construction trends across the country.”
Among Canada’s big three cities, Montreal posted a 104 per cent annual increase in actual housing starts in October, primarily driven by multi-unit starts.
Meanwhile, both Toronto and Vancouver recorded major declines, reporting decreases of 42 and 36 per cent, respectively.
Housing starts also plummeted in medium-sized and smaller cities as well, with an 89 per cent drop in Kamloops, an 83 per cent drop in Thunder Bay, an 82 per cent drop in Gatineau and an 81 per cent decrease in Saguenay.
Meanwhile, Peterborough saw a 70 per cent decline, while both London and Windsor suffered a 63 per cent drop in housing starts last month.
According to the CMHC report, “actual housing starts were down 3 per cent year-over-year in centres with a population of 10,000 or greater,” while the six-month moving average of the seasonally adjusted annual rate was down 17 per cent in October for all areas in Canada.