Wrapping up the first month of 2022, new housing starts across Canada trended lower according to the latest information from the Canada Mortgage and Housing Corporation (CMHC).
In January, the trend in housing starts was 254,133 units, a drop from December 2021’s 261,352 units.
CMHC defines this trend measure as a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts. The trend measure is used as a complement to the monthly SAAR of housing starts to “account for considerable swings in monthly estimates,” as well as to get a more complete picture of Canada’s future new housing supply.
“On a trend and monthly SAAR basis, the level of housing starts activity in Canada remains historically high; however, the six-month trend in housing starts was lower from December to January,” said Bob Dugan, CMHC’s chief economist, in the report. “For SAAR housing starts in Canada’s urban areas, single-detached starts were higher, while multi-family starts declined in January.”
Dugan also noted that between Montréal, Toronto and Vancouver, Montréal was the only market to report growth in total SAAR starts in January as a result of higher single-detached and multi-family starts.
In January, the standalone monthly SAAR of total housing starts for all areas in Canada was 230,754 units. This marks a three per cent drop from the 238,405 units recorded in December.
In the same month, the SAAR of total urban starts dropped five per cent monthly to 204,428 units, while rural starts were estimated to be 26,326 units at a seasonally adjusted annual rate. By housing type, multiple urban starts decreased nine per cent month-to-month to 144,332 units as single-detached urban starts actually grew seven per cent to 60,096 units between January and December.
By metropolitan area, Toronto, Montréal and Vancouver reported SAAR totals of 21,714 units, 26,456 units and 22,192 units in January. On a month-to-month basis, this equals a 27 per cent and 17 per cent decrease for Toronto and Vancouver, but a 16 per cent increase for Montréal. Calgary and Halifax also reported monthly drops of 44 per cent and 17 per cent, while increases were noted in Ottawa–Gatineau (94 per cent) and Winnipeg (four per cent).
CMHC defines a housing start as when construction starts on a building where a dwelling unit is located, usually when concrete has been poured for the footing around the structure, or the equivalent stage when a basement is not a part of the structure.
