Canadian Housing Starts Decline Month-Over-Month in August

The Canadian Mortgage and Housing Corporation (CMHC) reported on Monday (9-18-23) that the standalone monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada declined 1% month-over-month in August to 252,787 units, compared to 255,232 units in July.

The monthly SAAR for total urban starts in areas centers with a population of 10,000 or more decreased 1.0%, with 233,075 units recorded in August. Multi-unit urban starts also declined 1.0% to 191,250 units, while single-detached urban starts increased 2% to 41,825 units. The rural starts monthly SAAR was estimated at 19,712 units.

The trend in housing starts was flat in August at 244,507 units, up only 0.8% from 242,552 units in July. The trend measure is a six-month moving average of the monthly SAAR of total housing starts for all areas in Canada.

Adding additional background and his analysis to the report, CMHC Chief Economist Bob Dugan said:

“While both the SAAR and trend in housing starts were flat relative to the previous month, total housing starts are under pressure in 2023, except in Ontario and British Columbia. The one bright spot in Canada has been multi-unit starts which have helped offset significant declines recorded in single-detached starts in all provinces this year. Market intelligence suggests multi-unit projects started during the busy summer months were likely financed a few months prior, so the full effect of higher interest rates on construction activity remains to be seen.”