Canadian Housing Starts Fall Month-Over-Month in November, but 6-Month Average Ticks Up

The Canada Mortgage and Housing Corporation (CMHC) announced on Friday that the six-month trend in housing starts was 0.7% higher month-over-month In November, with 257,777 units reported, up from 255,876 units in October. CMHC notes that the trend is a six-month moving average of the monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada.

The monthly SAAR of total housing starts for all areas in Canada decreased 22% in November to 212,624 units, compared to October’s 272,264 units.

According to CMHC data, the monthly SAAR of total urban housing starts in population centers of 10,000+ decreased 23%, with 195,363 units recorded. Multi-unit urban starts decreased 27% to 151,297 units, while single-detached urban starts decreased 7% to 44,066 units. The rural starts monthly SAAR estimate was 17,261 units.

Commenting on the report, CMHC Deputy Chief Economist Kevin J.G. Hughes said:

“The notable drop in the rate of housing starts in November, particularly in the multi-unit space, should not come as a major surprise and reflects tighter economic conditions impacting construction timelines. As the more difficult borrowing conditions and labor shortages now seem to be showing in the starts numbers, we can expect to see continued slower starts rates in the coming months.”