Housing starts trending lower

September 30, 2022



The monthly seasonally adjusted annual rate (SAAR) of total housing starts for in Canada in August 2022 was 267,443 units—down 3 per cent from July.
The SAAR of total urban starts decreased 3 per cent to 246,771 units in August. Multi-unit urban starts declined 4 per cent to 187,602 units, while single-detached urban starts increased 1 per cent to 59,169 units.
Rural starts were estimated at a seasonally adjusted annual rate of 20,672 units.
“The six-month trend in housing starts was higher in August compared to July, despite a lower monthly SAAR. Housing starts activity remains elevated in Canada historically and have been well above 200,000 units since 2020,” said Bob Dugan, CMHC's chief economist. “The decline in monthly SAAR housing starts in Canada’s urban areas in August was driven by lower multi-unit starts. A decline in single-detached units in Vancouver was offset by higher multi-unit starts. Toronto posted strong increases across the board, while Montreal recorded a 33 per cent decline in multi-unit starts, resulting in the overall decline for Canada.”
In Montreal, Toronto and Vancouver, high construction costs, rising interest rates and a corresponding decline in pre-sales of new multi-family units, have persuaded developers to stall or stop launches of several condominium projects.