Canadian Housing Starts Decrease 22% in August

On Tuesday, the Canadian Mortgage and Housing Corporation (CMHC) reported that the six-month trend in housing starts decreased 2.9% from 255,794 units in July to 248,480 units in August. The “trend” measure is a six-month moving average of the seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada.

The total monthly SAAR of housing starts for all areas in Canada decreased 22% to 217,405 units in August, down from 279,804 units in July. The rural starts monthly SAAR estimate was 17,927 units.

In Canada’s urban centers with a population of 10,000 or greater, there have been 149,922 actual housing starts year-to-date. This compares to 143,229 for the same period in 2023, meaning actual housing starts are currently 5% higher this year.

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

“Growth in actual year-to-date housing starts has been driven by both higher multi-unit and single-detached units in Alberta, Quebec, and the Atlantic provinces. By contrast, year-to-date starts in Ontario and British Columbia have decreased across all housing types. As the housing shortage continues, higher levels of construction are needed to restore affordability in Canada’s urban centers.”