Housing starts stall in Toronto, Vancouver – Daily Commercial News

OTTAWA — Canada Mortgage and Housing Corporation (CMHC) has reported the total monthly seasonally adjusted annual rate (SAAR) of housing starts for all areas in Canada decreased nine per cent in June (241,672 units) compared to May (264,929).

The six-month trend in housing starts decreased 0.4 per cent from 248,260 units in May to 247,205 units in June, stated a release. The trend measure is a six-month moving average of the SAAR of total housing starts for all areas in Canada.

The actual number of housing starts across Canada in urban centres of 10,000 population and over was down 13 per cent to 20,509 units in June compared to 23,518 units in June 2023. The year-over-year decrease was driven by lower multi-unit starts, down 16 per cent, while single-detached starts were similar to last June.

June’s total actual housing starts were markedly lower in two of Canada’s three major cities compared to June 2023, with Toronto down 60 per cent and Vancouver down 55 per cent. Both cities recorded significant declines in multi-unit construction. Montreal was up significantly at 226 per cent, due to much higher multi-unit activity.

Through the first half of 2024, Canada’s six largest Census Metropolitan Areas (CMAs) saw a modest four per cent combined year-over-year increase from 2023, driven by higher starts levels in Calgary, Edmonton and Montreal, which made up for decreases in Vancouver, Toronto and Ottawa. Among the largest of the big six CMAs, Vancouver and Toronto have seen apartment starts slow as high interest rates and weak condominium pre-construction sales appear to be affecting these centres negatively. Meanwhile, Montreal has observed higher multi-unit construction this year, with apartment starts up 63 per cent from the eight-year low recorded in 2023.

Also of note is the higher construction activity in Calgary and Edmonton as starts increased across all dwelling types, driving total starts up 38 per cent and 67 per cent respectively.

“The higher interest rate environment appears to have caught up with some of Canada’s major centres as lower multi-unit starts, particularly in Vancouver and Toronto, drove both the SAAR and Trend down in June,” stated CMHC chief economist Bob Dugan in a statement. “While strong starts growth in June and the first half 2024 in Calgary, Edmonton and Montreal mitigated some of these decreases, we expect continued downward starts pressure across Canada throughout 2024.”