Business and Economy
Canadian Housing Starts Increased in June
“The national trend in housing starts increased in June,” said Bob Dugan, CMHC’s chief economist. “This reflects higher multi-family starts in Toronto and Montreal following declines in these centres in recent months from COVID-19 measures. Housing starts continued to decline in most other centres in June, including Vancouver.
We expect national starts to trend lower in the near term as a result of the negative impact of COVID-19 on economic and housing indicators.” (Photo by Canadian Mortgage and Housing Corporation)
The trend in housing starts was 199,655 units in June 2020, up from 197,063 units in May 2020, 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.
“The national trend in housing starts increased in June,” said Bob Dugan, CMHC’s chief economist. “This reflects higher multi-family starts in Toronto and Montreal following declines in these centres in recent months from COVID-19 measures. Housing starts continued to decline in most other centres in June, including Vancouver. We expect national starts to trend lower in the near term as a result of the negative impact of COVID-19 on economic and housing indicators.”
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 211,681 units in June, an increase of 8.3% from 195,453 units in May. The SAAR of urban starts increased by 8.7% in June to 196,675 units. Multiple urban starts increased by 13.0% to 154,602 units in June while single-detached urban starts decreased by 4.5% to 42,073 units.
Rural starts were estimated at a seasonally adjusted annual rate of 15,006 units.
Preliminary Housing Starts data are 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.
Like many other government organizations, businesses and individuals, we are closely following developments around COVID-19.
The monthly release of our Preliminary Housing Starts data will continue as planned. CMHC will report any impact on our ability to collect housing data.
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.
For more information, follow us on Twitter, YouTube, LinkedIn, Facebook and Instagram.
