Canada’s national market continues to experience a steady decline in housing starts, says the Canada Mortgage and Housing Corporation (CMHC).
According to the latest data from CMHC, the standalone monthly seasonally adjusted annual rate (SAAR) of total housing starts across Canada declined to 202,494 units. Compared to the previous month, that’s a 23 per cent drop.
A closer look at the numbers reveals that the decline in housing starts is primarily concentrated in urban areas – defined by CMHC as cities or urban centres with populations over 10,000.
Per CMHC data, the monthly SAAR of total urban starts dropped by 24 per cent, with only 182,842 units initiated. Within the urban category, multi-unit starts saw the largest drop of 30 per cent to 139,890 units. Conversely, single-detached urban starts increased by a modest 6 per cent to 42,952 units. Rural starts were estimated at 19,652 units.
“We observed declines in both the SAAR and the trend of housing starts in May,” Bob Dugan, chief economist for CMHC said. “The decline in housing starts is due to constraints in new construction, including labour shortages and higher construction and borrowing costs, which is considerably affecting multi-unit starts.”
Three major Canadian metropolitan areas – Vancouver, Toronto and Montreal all experienced declines in total SAAR housing starts during the month of May. Vancouver displayed the most significant setback, with a 45 per cent decrease. Toronto and Montreal followed suit, with declines of 28 and 35 per cent respectively. All three cities saw an increase in single-detached starts that was offset by large declines in multi-unit starts.
