Canadian housing starts, which refer to the initiation of new home construction, saw a notable 14% increase in September compared to the previous month, according to data released by the national housing agency. The Canada Mortgage and Housing Corporation (CMHC) reported a seasonally adjusted annualized rate of 279,234 housing starts, up from a revised 244,543 units in August. This growth surpassed economists’ expectations of a rise to 255,000 units.
CMHC’s deputy chief economist, Tania Bourassa-Ochoa, highlighted that the upward trend in housing starts over the past six months was driven by significant increases in Ontario, Quebec, and the Prairie provinces. Montreal and Toronto contributed over a quarter of the total monthly starts nationwide, largely due to a surge in new rental apartment construction.
Despite the challenging resale market conditions, September’s new builds displayed resilience, as noted by Robert Kavcic, a senior economist at BMO. Housing starts have averaged 256,000 over the last year, showing a notable increase from earlier lows. However, Ontario’s average of 63,000 starts in the past year marks a decade-low.
Kavcic emphasized the dominance of rental properties in propelling housing starts, surpassing both homeownership and condominium construction activities combined. The annual pace of housing starts in Canadian cities with populations exceeding 10,000 reached 254,345 units in September, a 16% rise from August’s 219,408 units. Meanwhile, rural starts were estimated at 24,889 units during the same period.
