Photo: Eric Sehr/Flickr
Is Canada’s love affair with condo building simmering down? According to the CMHC, the seasonally adjusted annual rate (SAAR) for urban housing starts in July was 182,932, a number virtually in line with the month before.
However, multiple urban starts for July saw a two per cent slump, decreasing from 118,262 in June to 115,870 in July. On the flip side, starts for single-detached units saw a boost in building month-to-month: they rose 4.7 per cent to 67,062 units in July.
In May and June, multiple starts in Canadian cities edged upward, month-to-month. But Statistics Canada recently reported a drop in construction permits for June, with the multi-family market seeing permits in municipalities drop by six per cent in June, the first decline after three consecutive months of increases.
Canada-wide, the standalone monthly SAAR for July was 200,098, a modest increase from 198,665 in June. Urban starts increased the most in Atlantic Canada, which counted 11,184 starts in July, up 65 per cent from 6,770. Ontario followed with a 22.7 per cent rise in starts month-to-month.
The largest drop was in the Prairies. Urban starts fell from 61,875 in June to 46,747 in July, nearly a 25 per cent decrease. Modest decreases were recorded in British Columbia and Quebec as well.
Taking the longview, the CMHC noted that country-wide six-month average for the monthly seasonally adjusted annual rate was 189,784 units in July, a slight bump from 185,952 in June.
“The trend in construction has increased modestly in recent months due to in large part to multiple starts, which have strong variability from month-to-month,” said Bob Dugan, CMHC’s Chief Economist, in the news release.
“Nevertheless, CMHC continues to expect a soft landing for the new home construction market in Canada.”
For more details, check out the table below: