June 17, 2024

Housing starts for May 2024

OTTAWA, ON, June 17, 2024 /CNW/ – The total monthly seasonally adjusted annual rate (SAAR) of housing starts for all areas in Canada increased 10% in May (264,506 units) compared to April (241,111), according to Canada Mortgage and Housing Corporation (CMHC).

The six-month trend in housing starts increased 3.8% from 238,859 units in April to 247,830 units in May. The trend measure is a six-month moving average of the SAAR of total housing starts for all areas in Canada.

The actual number of housing starts across Canada in urban centres of 10,000 population and over was up 39% to 21,652 units in May compared to 15,606 units in May 2023. The year-over-year increase was driven by higher multi-unit starts, up 49% and higher single-detached starts, up 6%.

May’s total actual housing starts were higher in two of Canada’s three major cities, with Toronto up 26% and Montréal up 200% compared to May a year ago. Vancouver declined 13%. Montreal’s total starts result was driven by a 59% increase in single-detached starts and a 218% increase in multi-unit starts versus May 2023.

Quote:

“The focus for homebuilders remains on multi-unit construction in Canada’s major centres as both the SAAR and Trend of housing starts increased in May, following two consecutive months of decline. This was due to growth in actual year-over-year starts, driven by significantly higher multi-unit starts, particularly in Montréal and Québec. While this is good news for housing supply, we do expect downward pressure on starts through the rest of 2024,” said Bob Dugan, CMHC’s Chief Economist.

Key Facts:

The monthly SAAR of total urban housing starts (centres with population above 10,000) was 11% higher at 246,111 units recorded. Multi-unit urban starts increased 13% to 203,141 units, while single-detached urban starts increased 2% to 42,970 units.The rural starts monthly SAAR estimate was 18,395 units.Total SAAR housing starts were up 104% in Montréal, driven by a 106% increase in multi-unit starts. Vancouver declined 32%, due to decreases in multi-unit starts. Toronto increased 47% with multi-unit starts higher.Monthly Housing Starts and Other Construction Data are accessible in English and French on our website and the CMHC Housing Market Information Portal.Housing starts data is available on the eleventh business day each month. We will release the June housing starts data on July 16 at 8:15 AM ET.CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and to obtain a clearer picture of upcoming new housing supply. In some situations, analyzing only SAAR data can be misleading, as the multi-unit segment largely drives the market and can vary significantly from one month to the next.Definitions and methodology to better understand the foundations of the Starts and Completions and Market Absorption surveys.

As a trusted source of housing information, CMHC provides unbiased housing-related data, research, and market information to help close knowledge gaps, and deepen understanding of complex housing issues to inform future policy decisions.

Housing starts facilitate the analysis of monthly, quarterly, and year-over-year activity in the new home market. The data we collect as part of our Starts and Completions and Market Absorption surveys helps us obtain a clearer picture of upcoming new housing supply and is used as part of our various housing reports.

Housing starts for May 2024

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Housing starts for May 2024

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