Canadian Housing Starts Trend Upwards in March

OTTAWA, ONTARIO -- (Marketwired) -- 04/10/17 -- Housing starts are trending higher at 211,342 units in March 2017, compared to 205,521 units in February 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.

"March housing starts were at their highest level since September 2007, pushing the trend in housing starts upward for a third consecutive month," said Bob Dugan, CMHC's Chief Economist. "Stronger residential construction at the national level is reflected by a rising trend in single-detached and multi-unit starts in Ontario and continued growth of new rental apartments in Quebec."

Monthly Highlights

--  Vancouver housing starts trended lower for the fourth consecutive month
    but, remained above the five-year average. Actual housing starts reached
    the highest level on record for March since 1972, driven by new
    apartment construction. Starts activity in the Vancouver CMA is also
    picking up again after an unusually cold winter.

--  In Toronto, the total starts trend moved higher in March, supported by
    all housing types. While apartment starts registered the strongest trend
    increase in March, single-detached home construction has been trending
    higher since the end of last summer. Demand for new housing is growing
    as supply in the rental and resale markets is short, reflected by low
    rental apartment vacancy rates and declining active listings.

--  The decline in townhouse starts contributed to a downward trend in
    Hamilton CMA total housing starts, despite the strength in single-
    detached and semi-detached housing starts. Notwithstanding this month's
    decline, strong demand from local residents and out-of-town buyers
    continued to support townhouse construction as this type of dwelling
    remains the most viable option for many first time homebuyers.

--  'Demand' is the story in St. Catharines-Niagara. As buyers from Toronto
    and Hamilton seek the relatively affordable options, resale inventory is
    being squeezed and prices are soaring. This is prompting buyers to turn
    to the new housing market, where singles in land-abundant Niagara Falls
    remain a sought-after commodity.

--  Multi-unit residential construction in the Montreal area remained
    significant in March. In addition to several seniors' residences, many
    rental apartments were started in all parts of the metropolitan area
    this past month, and new rental units reached a 25-year high. With the
    decrease in inventories of unsold condominium units, renewed growth was
    also noted in this segment, as many new projects got under way.

--  The pace of residential construction in the Quebec area has slowed down
    since the beginning of the year. This decline has been mainly due to a
    decrease in activity in the purpose-built rental housing segment. It
    should be mentioned that starts of this type reached historically high
    levels in 2015 and 2016. Consequently, given the significant number of
    rental apartments currently under construction and the recent increase
    in the vacancy rate in the area, a downward adjustment was expected.

--  There is an upward momentum to residential construction in
    Charlottetown. Strong population growth coupled with a tight supply of
    both resale homes and rental units has led more homebuyers to look to
    the new home market. Singles starts over the first quarter of 2017
    reached levels not recorded since 1987.

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 253,720 units in March, up from 214,253 units in February. The SAAR of urban starts increased by 20.2 per cent in March to 235,674 units. Multiple urban starts increased by 30.2 per cent to 160,989 units in March, while single-detached urban starts increased by 3.1 per cent, to 74,685 units.

Rural starts were estimated at a seasonally adjusted annual rate of 18,046 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/1091323_CMHC_E.pdf

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

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

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

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

Source: Canada Mortgage and Housing Corporation

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