Housing starts in Canada were down for the seventh consecutive month, according to data from the Canada Mortgage and Housing Corp. (CMHC).
The standalone monthly seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada declined 23% in May (202,494 units) compared to April (261,357 units). The monthly SAAR of total urban starts – measured in metro centers with a 10,000 population and over) declined 24%, with 182,842 units recorded in May. Multi-unit urban starts declined 30% to 139,890 units, while single-detached urban starts increased 6% to 42,952 units.
Total SAAR housing starts in May were down in three of the nation’s major metro markets: Vancouver (-45%), Toronto (-28%) and Montreal (-35%). All three of these markets recorded increases in single-detached starts that were offset by large decreases in multi-unit starts.
“We observed declines in both the SAAR and the trend of housing starts in May,” said CMHC Chief Economist Bob Dugan. “The decline in housing starts is due to constraints in new construction, including labor shortages and higher construction and borrowing costs, which is considerably affecting multi-unit starts. Despite this, starts have only declined to the relatively high levels observed prior to 2020.”
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