Canadian Housing Starts Climb Higher in April

The Canadian Mortgage and Housing Corporation (CMHC) reported today (5-16-22) that the trend in housing starts in Canada was 257,846 units in April, up from 253,226 units in March. This trend measure is a six-month moving average of the monthly seasonally adjusted annual rate (SAAR) of housing starts.

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a clearer picture of upcoming new housing supply. In some situations, analyzing only SAAR data can be misleading, as the multi-unit segment largely drives the market and can vary significantly from one month to the next.

The standalone monthly SAAR of total housing starts for all areas in Canada in April was 267,330 units, an increase of 8% from March. The SAAR of total urban starts increased by 10% to 245,324 units in April. Multi-unit urban starts increased by 14% to 178,092 units, while single-detached urban starts increased by 1% to 67,232 units. Rural starts were estimated at a seasonally adjusted annual rate of 22,006 units.

In a statement prepared for the March Housing Trend Report, Bob Dugan, CMHC’s Chief Economist, said, “The increase in monthly SAAR housing starts in Canada’s urban areas was driven by higher multi-unit and single-detached starts in April. Among Montreal, Toronto, and Vancouver, Toronto was the only market to post a decrease in total SAAR starts, which was driven by lower multi-unit and single-detached starts.”