Canadian housing starts trended higher in June

OTTAWA, July 9, 2019 /CNW/ - The trend in housing starts was 205,838 units in June 2019, compared to 200,530 units in May 2019, 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.

Bob Dugan, Chief Economist, CMHC (CNW Group/Canada Mortgage and Housing Corporation)

Housing Starts in Canada - All Areas (CNW Group/Canada Mortgage and Housing Corporation)

"The national trend in housing starts increased in June, primarily due to higher trending row and apartment starts, in urban areas," said Bob Dugan, CMHC's chief economist. "The strong surge in the SAAR of apartment starts in April is also contributing to the high level of the trend measure of total housing starts in June".

Monthly Highlights

Vancouver
Vancouver Census Metropolitan Area (CMA) housing starts trended higher in June, due to increased housing starts in the multi-unit sector. The majority of the multi-unit housing starts were concentrated in the City of Vancouver and the City of Richmond. Overall, the year-to-date starts increased by about 25%, supported by population growth and continuous strengthening of economic fundamentals.

Edmonton
Housing starts in Edmonton CMA trended higher in June, with single-detached starts declining slightly while multi-units starts doubled compared to the same month last year. With a high level of unsold inventory, the year-to-date starts saw a decline compared to the same period last year, as builders shift focus from starting new projects to completing existing ones while the economy continues to recover from the economic downturn.

Lethbridge
In the Lethbridge CMA, total starts trended higher in June 2019 compared to the previous month. The respective trend increased across all types of housing units in June. Construction activities picked up as the demand for new homes increased supported by growth in the millennial population.

Saskatoon
The trend measure of total housing starts in Saskatoon rose further in June after homebuilders increased the pace of multi-unit construction. While the trend moved higher, actual starts of all housing types decreased by 16% during the first six months of 2019, compared to the same period in 2018. A number of factors, including higher construction costs and weaker new home demand, have contributed to builders scaling back production of new housing units so far this year.

Winnipeg
In June 2019, the trend in total housing starts in the Winnipeg CMA trended higher compared to the previous month. For the first half of 2019, total starts trended 15% higher compared to same period the previous year, driven mainly by apartment starts. The 89% increase in apartment starts for the first half of 2019 supports the growing demand for rental accommodations in the CMA. Single-detached, semi-detached and row starts all trended lower in the first half of 2019 compared to the same period in 2018.

Greater Sudbury
The trend for overall housing starts in the Greater Sudbury CMA moved higher in June, owing to an increase in the trend for semi-detached starts. Semi-detached units are not readily available in the local resale market and tend to come at a more affordable price point for prospective first-time buyers looking for a new build.

Kingston
Following a strong performance in 2018, the actual total starts in Kingston CMA during the first half of 2019 were down 14% from a year earlier. The decline was most pronounced in the multi-unit segment due to substantially lower starts of semi-detached and rows, while the number of apartment starts was almost on par with the previous year. In response to the persistently low vacancy rates over the past ten years, all apartment starts through June 2019 were rental.

Toronto
The total housing starts trend in the Toronto CMA remained virtually unchanged in June from the previous month with row and semi-detached home starts trending slightly lower, while apartment and single-detached homes trending slightly higher.  Overall, multi-unit home starts continue to dominate construction so far this year as more homebuyers choose lower priced condominium apartments and row houses over higher priced single-detached homes.

Kitchener-Cambridge-Waterloo
Total housing starts in Kitchener-Cambridge-Waterloo trended up in June. The increase came from higher starts of multi-unit homes (semi-detached, rows and apartments), as single-detached starts went in the opposite direction. Apartment starts continue to dominate, largely owing to the development occurring around the new light rail transit line. The moderation in single-detached starts can be linked back to low pre-construction sales in the second half of 2018. 

Sherbrooke
Residential construction in the Sherbrooke CMA has been particularly strong since the beginning of the year. In fact, 984 housing units were started in the area during the first half of 2019—the highest level in over 30 years. The increase in activity was attributable mainly to the rental housing segment, as both purpose-built and seniors' rental housing projects got under way. Overall, residential construction in the area has continued to be supported by the rise in full-time employment, migration and the aging of the population.

Québec
From January to June 2019, foundations were laid for nearly 2,600 housing units in the greater Québec city area, a number similar to that recorded during the same period in 2018. Once again this year, activity was supported mainly by the construction of rental housing, which accounted for about two thirds of the dwellings started. This market segment has been stimulated by several factors, including greater demand for apartments due to the aging population.

Halifax
Total housing starts in Halifax continue to gain momentum in June, expanding by 45% year-over-year. The apartment segment remains the dominate driver of residential construction as strong population growth, especially apparent in the young adult population, and historically low vacancy rates support demand. The number of apartment units that broke ground this month reached the highest peak since 2015, as multi-unit starts year-to-date climbed by 62% compared to the same period last year.

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 245,657 units in June, up 26% from 196,809 units in May. The SAAR of urban starts increased by 26% in June to 234,238 units. Multiple urban starts increased by 31% to 185,804 units in June while single-detached urban starts increased by 8% to 48,434 units.

Rural starts were estimated at a seasonally adjusted annual rate of 11,419 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.

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Preliminary Housing Start Data in Centres 10,000 Population and Over
		Single-Detached			All Others			Total
		June 2018	June 2019	%	June 2018	June 2019	%	June 2018	June 2019	%
Provinces (10,000+)
N.-L.		82	64	-22	10	26	160	92	90	-2
P.E.I.		31	35	13	42	93	121	73	128	75
N.S.		184	172	-7	324	488	51	508	660	30
N.B.		121	92	-24	170	370	118	291	462	59
Atlantic		418	363	-13	546	977	79	964	1,340	39
Qc		804	774	-4	4,061	4,500	11	4,865	5,274	8
Ont.		2,355	2,057	-13	6,871	4,063	-41	9,226	6,120	-34
Man.		209	194	-7	282	579	105	491	773	57
Sask.		134	117	-13	102	124	22	236	241	2
Alta.		1,032	949	-8	1,176	1,741	48	2,208	2,690	22
Prairies		1,375	1,260	-8	1,560	2,444	57	2,935	3,704	26
B.C.		908	778	-14	2,055	4,332	111	2,963	5,110	72
Canada (10,000+)		5,860	5,232	-11	15,093	16,316	8	20,953	21,548	3
Metropolitan Areas
Abbotsford-Mission		31	38	23	16	32	100	47	70	49
Barrie		40	26	-35	254	0	-100	294	26	-91
Belleville		51	53	4	6	28	367	57	81	42
Brantford		58	4	-93	4	5	25	62	9	-85
Calgary		360	310	-14	707	801	13	1,067	1,111	4
Edmonton		475	467	-2	387	838	117	862	1,305	51
Greater Sudbury		26	13	-50	11	12	9	37	25	-32
Guelph		29	51	76	78	13	-83	107	64	-40
Halifax		110	108	-2	281	460	64	391	568	45
Hamilton		48	58	21	498	97	-81	546	155	-72
Kelowna		91	65	-29	210	183	-13	301	248	-18
Kingston		47	53	13	180	0	-100	227	53	-77
Kitchener-Cambridge-Waterloo		94	84	-11	203	243	20	297	327	10
Lethbridge		33	32	-3	13	30	131	46	62	35
London		130	131	1	480	311	-35	610	442	-28
Moncton		37	26	-30	58	209	260	95	235	147
Montréal		328	273	-17	2,484	3,159	27	2,812	3,432	22
Oshawa		214	192	-10	129	78	-40	343	270	-21
Ottawa-Gatineau		367	297	-19	812	648	-20	1,179	945	-20
Gatineau		25	34	36	204	81	-60	229	115	-50
Ottawa		342	263	-23	608	567	-7	950	830	-13
Peterborough		54	17	-69	5	7	40	59	24	-59
Québec		95	103	8	812	901	11	907	1,004	11
Regina		37	26	-30	41	44	7	78	70	-10
Saguenay		37	29	-22	22	30	36	59	59	-
St. Catharines-Niagara		60	122	103	87	58	-33	147	180	22
Saint John		33	20	-39	0	72	##	33	92	179
St. John's		66	50	-24	7	25	257	73	75	3
Saskatoon		88	81	-8	43	76	77	131	157	20
Sherbrooke		51	79	55	114	36	-68	165	115	-30
Thunder Bay		22	21	-5	8	4	-50	30	25	-17
Toronto		600	555	-8	4,116	2,460	-40	4,716	3,015	-36
Trois-Rivières		25	39	56	42	6	-86	67	45	-33
Vancouver		422	331	-22	1,045	3,158	202	1,467	3,489	138
Victoria		94	70	-26	418	149	-64	512	219	-57
Windsor		73	73	-	23	18	-22	96	91	-5
Winnipeg		167	166	-1	239	555	132	406	721	78
Total		4,493	4,063	-10	13,833	14,746	7	18,326	18,809	3
Data based on 2016 Census Definitions. Source:  Market Analysis Centre, CMHC ## not calculable / extreme value

Preliminary Housing Start Data - Seasonally Adjusted at Annual Rates (SAAR)
		Single-Detached			All Others			Total
		May 2019	June 2019	%	May 2019	June 2019	%	May 2019	June 2019	%
Provinces (10,000+)
N.L.		333	463	39	153	247	61	486	710	46
P.E.I.		208	271	30	648	1,116	72	856	1,387	62
N.S.		1,350	1,424	5	1,797	5,857	226	3,147	7,281	131
N.B.		519	595	15	1,306	4,398	237	1,825	4,993	174
Qc		5,959	6,218	4	41,051	46,572	13	47,010	52,790	12
Ont.		16,913	18,175	7	31,173	47,151	51	48,086	65,326	36
Man.		2,018	2,134	6	6,132	6,948	13	8,150	9,082	11
Sask.		1,075	1,092	2	1,044	1,488	43	2,119	2,580	22
Alta.		8,768	9,972	14	12,304	20,094	63	21,072	30,066	43
B.C.		7,627	8,090	6	46,038	51,933	13	53,665	60,023	12
Canada (10,000+)		44,770	48,434	8	141,646	185,804	31	186,416	234,238	26
Canada (All Areas)		52,437	56,503	8	144,372	189,156	31	196,809	245,657	25
Metropolitan Areas
Abbotsford-Mission		465	422	-9	1,320	384	-71	1,785	806	-55
Barrie		105	146	39	156	0	-100	261	146	-44
Belleville		450	460	2	144	336	133	594	796	34
Brantford		146	95	-35	60	60	-	206	155	-25
Calgary		3,345	3,203	-4	6,216	9,612	55	9,561	12,815	34
Edmonton		3,491	4,699	35	3,120	10,056	222	6,611	14,755	123
Greater Sudbury		89	82	-8	48	144	200	137	226	65
Guelph		309	308	0	192	156	-19	501	464	-7
Halifax		822	804	-2	1,500	5,520	268	2,322	6,324	172
Hamilton		419	563	34	2,520	1,164	-54	2,939	1,727	-41
Kelowna		422	706	67	624	2,196	252	1,046	2,902	177
Kingston		311	373	20	144	0	-100	455	373	-18
Kitchener-Cambridge-Waterloo		661	814	23	1,020	2,916	186	1,681	3,730	122
Lethbridge		264	368	39	144	360	150	408	728	78
London		1,337	1,099	-18	648	3,732	476	1,985	4,831	143
Moncton		169	162	-4	1,212	2,508	107	1,381	2,670	93
Montréal		2,291	2,310	1	23,159	37,387	61	25,450	39,697	56
Oshawa		2,393	1,193	-50	1,824	936	-49	4,217	2,129	-50
Ottawa-Gatineau		3,058	2,677	-12	10,536	7,776	-26	13,594	10,453	-23
Gatineau		562	507	-10	5,484	972	-82	6,046	1,479	-76
Ottawa		2,496	2,170	-13	5,052	6,804	35	7,548	8,974	19
Peterborough		206	118	-43	1,068	84	-92	1,274	202	-84
Québec		787	741	-6	8,028	10,812	35	8,815	11,553	31
Regina		145	234	61	144	528	267	289	762	164
Saguenay		249	191	-23	252	360	43	501	551	10
St. Catharines-Niagara		791	1,232	56	1,488	696	-53	2,279	1,928	-15
Saint John		143	121	-15	24	864	##	167	985	490
St. John's		247	356	44	156	300	92	403	656	63
Saskatoon		766	735	-4	876	912	4	1,642	1,647	0
Sherbrooke		322	385	20	1,116	432	-61	1,438	817	-43
Thunder Bay		101	111	10	96	48	-50	197	159	-19
Toronto		3,789	5,478	45	16,404	29,520	80	20,193	34,998	73
Trois-Rivières		232	236	2	456	72	-84	688	308	-55
Vancouver		3,589	3,608	1	39,072	37,896	-3	42,661	41,504	-3
Victoria		622	674	8	1,704	1,788	5	2,326	2,462	6
Windsor		553	521	-6	264	216	-18	817	737	-10
Winnipeg		1,718	1,755	2	5,832	6,660	14	7,550	8,415	11
Data based on 2016 Census Definitions.
Source:  Market Analysis Centre, CMHC
## not calculable / extreme value

SOURCE Canada Mortgage and Housing Corporation

Angelina Ritacco, Media Relations, CMHC, 416-218-3320, [email protected]

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