National housing starts continue to climb through the end of the year
By Lucas on Dec 08, 2015
The Canada Mortgage and Housing Corporation (CMHC) released its national housing starts figures for November 2015, announcing that the upward trend has continued. The trend measure for November 2015 was 208,401 units, compared to 206,125 in October.
“The trend in housing starts increased for a seventh consecutive month due to the multi-unit segment,” says Bob Dugan, CMHC’s Chief Economist. “Rising single home prices continue to support demand for multiples, which are poised to reach the largest proportion of total urban starts since 1971. However, inventory management is necessary to make sure that these units do not remain unsold upon completion.”
The trend is a six month moving average of seasonally adjusted annual rates (SAAR). The standalone SAAR for November 2015 was 211,916 units, compared to 197,712 in October. The SAAR of urban starts went up 7.7% to 195,121 units. Multi-unit urban starts saw a huge jump of 13.2% to 137,898 units, while single-detached urban starts went down 3.6% to 57,223.
The Prairies, Ontario, and Atlantic Canada saw increases in housing starts, while British Columbia and Quebec experienced decreases. Rural starts are estimated to be about 16,795 units.
In Toronto CMA, housing starts trended at 45,866 units, compared to 45,766 in October. The standalone monthly SAAR was 58,964 units, which is a large increase from 38,744 the previous month.
“A jump in condominium apartment starts, prompted in part by pre-construction condos getting underway, saw GTA housing starts trend higher in November,” says Dana Senagama, CMHC Principal Market Analyst for the GTA. “Moreover, historically low borrowing costs have kept housing demand high across Toronto and November saw strong low-rise starts, particularly in single and semi-detached homes.”
The City of Toronto had the most total starts in the GTA, most of which were condo apartment starts. Brampton came in second with the second most starts with many single-detached and row starts. Markham was also near the top with a significant number of high-rise starts.
