Housing starts surge in July, led by increased multi-unit construction in urban centres like Calgary and Ottawa
In July, the total seasonally adjusted annual rate (SAAR) of housing starts across Canada rose by 16 percent to 279,509 units, up from 241,643 units in June, according to the Canada Mortgage and Housing Corporation (CMHC).
The six-month trend in housing starts also saw an increase of 3.2 percent, moving from 247,840 units in June to 255,783 units in July. This trend measure is a six-month moving average of the SAAR for total housing starts across all regions in Canada.
Urban centres in Canada with populations of 10,000 or more have seen 132,823 actual housing starts year-to-date (January to July) in 2024, representing a 7.5 percent increase compared to the 123,593 starts during the same period in 2023.
“Both the SAAR and Trend of housing starts increased in July. This was due to growth in actual year-over-year starts, driven by higher multi-unit starts, particularly in Calgary and Ottawa,” stated Bob Dugan, CMHC's chief economist.
“As the national housing shortage continues, developers remain focused on multi-unit construction in Canada's major centres.”
Key data highlights include a 17 percent rise in the monthly SAAR of total urban housing starts, reaching 261,134 units in July. Multi-unit urban starts increased by 21 percent to 217,306 units, while single-detached urban starts saw a modest increase of 2 percent, totalling 43,828 units.
The rural starts monthly SAAR estimate stood at 18,375 units.
Year-to-date, Montreal has seen a 47 percent increase in actual housing starts from January to July 2024 compared to the same period in 2023, reflecting some recovery from a historically low year for new home construction in 2023.
Conversely, Vancouver's housing starts are down 18 percent in 2024 compared to 2023, though it is important to note that 2023 was a record year for new home construction in the region. In Toronto, actual housing starts for the year-to-date are down 9.5 percent compared to the same period in 2023.
CMHC provides monthly Housing Starts and Other Construction Data in both English and French on their website and through the CMHC Housing Market Information Portal.
The housing starts data is released on the eleventh business day each month, with the August data scheduled for release on September 17 at 8:15 am ET.
CMHC uses the trend measure alongside the monthly SAAR of housing starts to account for significant fluctuations in monthly estimates, particularly in the multi-unit segment, which can vary considerably from one month to the next.
This dual approach provides a clearer picture of upcoming new housing supply.
As a trusted source of housing information, CMHC delivers unbiased data, research, and market insights to bridge knowledge gaps and enhance understanding of complex housing issues, supporting future policy decisions.
