Canadian Housing Starts Climb 14% Month-Over-Month in February

On Friday, the Canadian Mortgage and Housing Corporation (CMHC) reported that housing starts for all areas in Canada increased 14% month-over-month to a seasonally adjusted annual rate (SAAR) of 253,468 units in February, up from 223,176 in January.

The six-month “trend” in housing starts—a six-month moving average of the SAAR of nationwide starts—increased from 244,638 units in January to 245,665 units in February, a modest increase of 0.4%.

The actual number of housing starts across Canada in centers of 10,000 population and over was up 11% to 17,495 units in February compared to 15,822 units in February 2023. The year-over-year increase was driven solely by a 16% increase in multi-unit starts. Single-detached starts fell 14%.

The rural starts monthly SAAR estimate was 14,835 units.

In remarks accompanying the release of the housing report, CMHC Chief Economist Bob Dugan said:

“Following two consecutive monthly declines, both the SAAR and Trend of housing starts increased in February. This was due to growth in actual year-over-year starts, driven by higher multi-unit starts, particularly in Toronto and Vancouver. As the national housing shortage continues, the focus for developers continues to shift towards multi-unit construction in Canada’s major centers.”