Six-month trend shows starts fell by 1.9 per cent
After dropping in August, Canadian housing starts rebounded by five per cent last month, reaching 223,808 units on a seasonally adjusted annual rate (SAAR) basis, according to data released Wednesday by Canada Mortgage and Housing Corp. (CMHC).
However, the six-month trend for housing starts dropped by 1.9 per cent, continuing a long-term slowdown in construction activity.
Actual housing starts year-to-date for 2024 show a modest two per cent increase over last year, driven primarily by growth in Alberta, Quebec, and the Atlantic provinces. Housing starts in Ontario and British Columbia declined significantly, however, with Toronto and Vancouver reporting year-to-date decreases of 20 per cent and 19 per cent, respectively, compared to 2023.
“Growth in actual year-to-date housing starts has been driven by both higher multi-unit and single-detached units in Alberta, Quebec and the Atlantic provinces. By contrast, year-to-date starts in Ontario and British Columbia have decreased across all housing types,” CMHC’s deputy chief economist Kevin Hughes said.
“After August’s distressing dip in housing starts, September’s rebound is a welcome relief,” Jarvis said. “But at this point in Canada’s housing shortage, one-step-forward, two-steps-back isn’t going to cut it. We need a significant ramp-up followed by an extended plateau of record-setting building activity to get us anywhere close to the number of homes we need.”
Challenges such as high construction costs and a shortage of skilled labour are expected to continue hampering new development as Canada heads into winter.
“New construction will theoretically become easier and faster when the government unveils its Housing Design Catalogue, but that won’t happen until December,” Jarvis said.
Despite short-term improvements, the overall outlook remains dire.
“Despite the increase in housing starts in September, we remain well below what is required to restore affordability in Canada’s urban centres,” Hughes said.