Canadian Housing Starts Decline Month-Over-Month in July

The Canada Mortgage and Housing Corporation (CMHC) reported on Wednesday (8-16-23) that the housing starts trendline—a six-month moving average of the monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada—increased for the second consecutive month in July due to a significant number of actual housing starts. The trend was 242,525 units, up 2.8% from 235,819 units in June.

The standalone monthly SAAR of total housing starts for all areas in Canada decreased 10% in July to 254,966 units, compared to 283,498 units in June. (June was the strongest month thus far in 2023.) Despite the monthly decline, total SAAR housing starts for all areas in Canada was 7.4% above the 5-year average.

The monthly SAAR of total urban starts in centers of population of 10,000 or more declined 11%, with 234,857 units recorded in July. Multi-unit urban starts fell 12% to 193,446 units, while single-detached urban starts decreased 4% to 41,411 units. The rural starts monthly SAAR estimate was 20,109 units.

CMCH notes that Vancouver experienced a total decrease of 23% in SAAR housing starts in July. The Toronto CMAs were down 29%. On the other hand, CMAs in Montreal were up 12%, Calgary was up 33%, and Edmonton CMAs recorded a 67% increase in total SAAR housing starts.