Housing starts jump to 10-year high

by Steve Randall11 Dec 2017
There was a jump in the trend measure of Canadian housing starts in November with many major markets showing an increase.

CMHC figures reveal that the 6-month trend was up by almost 10,000 compared to October, to a seasonally adjusted annualised rate of 226,270 units.

“The trend in housing starts reached its highest level in almost 10 years this November, reflecting a second consecutive increase in multiple starts,” said Bob Dugan, CMHC’s chief economist. “This largely reflects construction of multiple units in Toronto, where evidence of overbuilding is low due to the decreasing inventory of completed and unabsorbed multiple units and strong demand.”

Toronto’s rise in starts for condos continues to be influenced by a market shift away from higher priced single-family homes. CMHC expects a further rise in condo starts due to high levels of pre-construction sales in recent years.

In contrast, starts in the Vancouver CMA were lower in November as the construction sector’s full capacity meant a pullback in apartment starts.

Although the City of Vancouver, Richmond and the North Shore have recorded lower year-over-year starts, there has been increased activity in Burnaby and New Westminster.

There were notable gains for multifamily starts in St. John’s with millennials and first-time buyers choosing for lower-priced options.

Kitchener-Cambridge-Waterloo and Guelph also saw higher starts, and London recorded one of the highest ever number of starts for the month of November.

The standalone SAAR increased by almost 30,000 units to 252,184 with urban starts up 14.4% to 235,412 units. Multiple urban starts increased by 16.9% to 175,016 units and single-detached urban starts increased by 7.5% to 60,396 units.

Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate

Market update:

Get help choosing the best mortgage rate

Just fill in a few details, and we'll arrange for a Mortgage adviser to help you find the best mortgage for your needs

  • How soon do you want a mortgage?
  • Name
  • Where do you live?
  • Phone number
  • E-mail address

Industry news

Submit a press release


Do you invest in commercial properties?