Housing starts in Canada saw an 8% increase in October, driven by growth in both the multi-family and single-detached sectors, as reported by the national housing agency.
Canada Mortgage Housing Corporation (CMHC) stated that the seasonally adjusted rate of housing starts in October reached 240,761 units, up from 223,391 in September.
The urban multi-family sector saw a 7% increase in starts to nearly 176,000 units, while single-detached urban starts rose by 1% to 47,406 units.
GTA presales continue to be weak
Economist Rishi Sondhi from TD Economics mentioned that despite the October increase, the housing starts outlook remains soft, particularly in Ontario. Presales in the Greater Toronto Area are weak, leading to a forecasted decline in starts for the upcoming year.
“Despite these results, we remain well below what is required to restore affordability in Canada’s urban centres,” Bob Dugan, CMHC
The six-month trend in housing starts remained flat in October at 243,522 units. Bob Dugan, CMHC chief economist, noted that while year-to-date housing starts are similar to last year, Prairie provinces, Quebec, and Atlantic provinces are seeing higher activity, while Ontario and British Columbia are experiencing declines in all housing types.
Dugan added that the increase in the monthly SAAR in Toronto and Vancouver is a positive sign for Ontario and British Columbia, although more efforts are needed to restore affordability in Canada’s urban centers.
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