Canadian Housing Starts Trend Upwards in April

OTTAWA, ONTARIO -- (Marketwired) -- 05/08/17 -- Housing starts are trending higher at 213,768 units in April 2017, compared to 210,702 units in March 2017, according to Canada Mortgage and Housing Corporation (CMHC). This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.

"New housing construction increased in Canada, with seasonally adjusted data exceeding 200,000 units for five months in a row", said Bob Dugan, CMHC's Chief Economist. "The increase in the trend was mainly due to apartment construction in British Columbia and Quebec, which was partly offset by a decline in Ontario's multiple starts."

Monthly Highlights

--  Apartment construction continues to drive the residential market in
    Halifax. April saw more than 400 additional multiple starts breaking
    ground, bringing year-to-date multiples starts growth to 169% compared
    to last year. Demand is being driven in part by the ageing population as
    downsizing baby boomers are increasingly selling their homes and moving
    into rental units.

--  Even though the rate of housing starts in the Province of Quebec was
    down in April, the total for the first four months was up by about 30%
    in the province's urban centres. This result was mainly due to the
    significant construction of apartments, especially rental units, in the
    Montreal and Quebec areas. As well, single-detached home starts have
    been strong so far in 2017, thanks in part to tightening resale market
    conditions.

--  Despite the slight decline registered in April, residential construction
    in the Gatineau area showed positive results for the first four months
    of the year. The gains were particularly strong in the rental segment,
    with construction getting under way on many seniors' housing units.
    Overall, starts were supported by an increase in housing demand and a
    decrease in the number of unsold units on the new and existing home
    markets.

--  The trend in housing starts in Toronto remained stable in April, as
    slight increases in low-rise homes were offset by some declines in
    apartment starts. Overall, new home construction this year has been
    building momentum as both new single-detached and townhome starts
    trended higher to reach a nine-year high in April. Tight conditions in
    the resale market continue to cause demand to spill over into the new
    home market.

--  In London, April 2017 single-detached starts were much higher than in
    April 2016 and the ten year average for April. The gap between house
    prices in Toronto and London has widened significantly, making new
    single-detached homes in London that much more appealing to retirees
    from Toronto who wish to sell their home but not downsize.

--  In Winnipeg, a decrease in inventories in the new home market and
    balanced resale market conditions are allowing builders to increase
    production. Actual housing starts in April increased year-over-year for
    the fourth consecutive month, boosting year-to-date starts to their
    highest levels since 1987.

--  The trend measure for housing starts in the Kelowna CMA surged upwards
    again in April, due to an increase in both single-detached and multi-
    unit construction. In particular, a number of large apartment rental
    projects are now underway as builders continue to respond to the low
    vacancies that have characterized Kelowna's rental market for the past
    two years.

--  Housing starts in Metro Vancouver trended higher for the first time in
    four months, led by multiple-family residential construction. Builders
    are responding to demand in the market as eight in ten townhouses and
    all apartments were sold at completion during the last two months.

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of Canada's housing market. In some situations analyzing only SAAR data can be misleading, as they are largely driven by the multi-unit segment of the market which can vary significantly from one month to the next.

The standalone monthly SAAR of housing starts for all areas in Canada was 214,098 units in April, down from 252,305 units in March. The SAAR of urban starts decreased by 15.3 per cent in April to 199,485 units. Multiple urban starts decreased by 16.7 per cent to 134,314 units in April and single-detached urban starts decreased by 12.1 per cent, to 65,171 units.

Rural starts were estimated at a seasonally adjusted annual rate of 14,613 units.

Preliminary Housing Starts data is also available in English and French through our website and through CMHC's Housing Market Information Portal. Our analysts are also available to provide further insight into their respective markets.

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

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Additional data is available upon request.

To view the graph and table associated with this release, please visit the following link: http://media3.marketwire.com/docs/1093886e.pdf

Contacts:
CMHC media relations
National
Jonathan Rotondo
CMHC Media Relations
613-748-2734
[email protected]

Atlantic
Katherine LeBlanc
902-789-5709
[email protected]

Quebec
Catherine Leger
514-283-7972
[email protected]

Ontario
Angelina Ritacco
416-218-3320
[email protected]

Prairies
Courtney Gillis
403-515-3012
[email protected]

British Columbia
Jeanette Wilkinson
604-737-4025
[email protected]

Source: Canada Mortgage and Housing Corporation

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