After series of declines, the seasonally adjusted annual rate of housing starts in Canada recorded solid growth in November, after reaching 187,200 units, compared to 167,800 units in October, as reported by Canada Mortgage and Housing Corporation (CMHC).
Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre, believes it was due to higher activity in Ontario, which was able to offset declines in other regions. Several large apartment projects were started in Toronto. However, future demand is predicted to keep around the demographic demand, which is estimated as 175,000 units per year.
Urban starts increased by 14.6% to 163,100 units, pulled mainly by the mentioned multiple start sector, which recorded 20.9% growth and 101,800 new units started, the most o fit in Ontario (29,900 multiple units). Urban starts were up by 82.8% in Ontario; however, the activity went down in all other regions, except the Prairie. Sharpest decrease was in Atlantic Canada (-24%), followed by BC (-21.3%), and Quebec (15.2%).
Rural starts reached adjusted annual rate of 24,100 starts in November.