The Canada Mortgage and Housing Corporation (CMHC) has reported that housing starts across Canada showed modest growth in November, driven primarily by increased multi-unit construction in several provinces. While the six-month trend in housing starts remained flat at 243,268 units, the monthly seasonally adjusted annual rate (SAAR) rose by 8%, reaching 262,443 units compared to 242,207 in October.
This marked a historically busy November for urban centres with populations over 10,000, which recorded 22,345 actual housing starts. Year-to-date totals from January to November reached 210,912 units, a 3% increase over the same period in 2023, which saw 204,920 starts.
CMHC’s Chief Economist and Senior Vice-President of Market Insights, Mathieu Laberge, highlighted the role of multi-unit construction in provinces like Québec, Alberta, and British Columbia in driving the growth.
“Both the monthly SAAR and actual starts figures grew in November, driven primarily by multi-unit starts activity in Québec, Alberta, and British Columbia. While Alberta, Québec, and the Atlantic provinces are still pushing the national year-to-date starts higher, Canada still needs major increases in supply growth to restore affordability in our urban centres,” Laberge stated.
Multi-unit urban housing starts increased by 11% in November to 195,281 units, while single-detached urban starts rose by 4% to 49,802 units. Rural starts for the month were estimated at 17,360 units.
Montréal saw significant growth in November, with year-to-date housing starts rising 22% compared to the historically low levels of 2023. Vancouver and Toronto, however, experienced declines of 14% and 20%, respectively, over the same period. Monthly figures for November showed actual starts in Montréal increasing by 143% and Vancouver by 52%, while Toronto’s numbers remained steady compared to November 2023.
The CMHC reiterated the importance of its trend measure, a six-month moving average, as a complement to the SAAR to provide a clearer picture of housing market dynamics. The organization noted that the multi-unit housing segment, which largely drives the market, often sees significant monthly fluctuations.
In his remarks, Laberge also acknowledged Bob Dugan, CMHC’s outgoing Chief Economist, who retired after more than two decades with the organization. Laberge praised Dugan’s contributions to understanding Canada’s housing markets, wishing him well in his retirement.
With housing affordability remaining a critical issue in Canada, CMHC continues to collect data and analyze trends to better understand housing supply and demand.
The next report, covering housing starts for December 2024, is scheduled for release on January 16, 2025.
