Housing starts in Canada fall sharply by 9 percent last month
Date
7/17/2024 3:59:32 AM
(MENAFN) According to figures released Tuesday by the Canada Mortgage and housing Corporation (CMHC), housing starts in Canada fell sharply by 9 percent in June compared to the previous month. The total number of housing starts stood at 241,672 units in June, a significant decrease from 264,929 units in May. This drop was notably more pronounced than the market estimate, which anticipated around 255,000 starts.
The situation mirrors trends observed in May 2023 when housing starts plummeted by 23 percent, reaching 202,494 units, marking the lowest level seen in over three years. CMHC Chief Economist Bob Dugan highlighted that the current higher interest rate environment appears to have impacted several major Canadian cities, particularly leading to a decline in multi-unit starts in Vancouver and Toronto. He noted that while there was strong growth in housing starts in Calgary, Edmonton, and Montréal during June and the first half of 2024, these gains were not enough to offset the overall downturn expected throughout the rest of the year.
On an annual basis, the data reveals a stark contrast among Canada’s major urban centers. In June, actual housing starts in Toronto and Vancouver saw substantial declines of 60 percent and 55 percent, respectively, driven largely by significant reductions in multi-unit construction. In contrast, Montréal experienced a remarkable year-on-year increase of 226 percent, largely attributed to a surge in multi-unit activity. This divergence in trends among Canada’s major cities underscores the varying impacts of economic conditions on the housing market across the country.
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