The housing starts trendline in Canada increased for the second consecutive month in July, according to the Canada Mortgage and Housing Corporation (CMHC). 

July saw a healthy number of actual starts (242,525 units), up 2.8 per cent from 235,819 units in June. The trend measure is a six-month moving average for the monthly SAAR of total housing starts across the nation. 

The standalone monthly seasonally adjusted annual rate (SAAR) of total housing starts across Canada in July decreased by 10 per cent compared to June, which was the strongest month so far this year. Total urban starts decreased by 11 per cent (234,857 units), and multi-unit urban starts decreased by 12 per cent (193,446 units). 

However, despite the monthly drop, total SAAR housing starts for all areas in Canada was 7.4 per cent above the five-year average.

“Despite a decrease in the SAAR of housing starts relative to last month, July saw a healthy number of actual housing starts from a historical perspective,” Bob Dugan, CMHC’s chief economist said. “This pushed the trend of housing starts upward for the second consecutive month.”

“Market intelligence suggests multi-unit projects started in June and July were likely financed a few months prior, so, the effect of the most recent interest rate hikes on housing starts remains to be seen.” 

Vancouver and Toronto saw total SAAR housing starts decrease by 23 and 29 per cent respectively in July. Though these decreases were offset by increases in Montreal (12 per cent), Calgary (33 per cent), and Edmonton (67 per cent). Rural starts monthly SAAR estimate was 20,109 units.

To view the full report, visit cmhc-schl.gc.ca

Livabl (Cassie Apperloo, August 21,2023)