The Canada Mortgage and Housing Corporation (CMHC) reported a significant 10% decrease in the Seasonally Adjusted Annual Rate (SAAR) of housing starts across Canada for January 2024, compared to December 2023. This decrease marks a notable shift from 248,968 units in December 2023 to 223,589 units in January 2024. Furthermore, the six-month trend in housing starts also experienced a downturn, dropping by 2% from 249,757 units in December 2023 to 244,827 units in January 2024. This trend measure, a six-month moving average of the monthly SAAR, indicates a continuous adjustment in the pace of new housing construction.

Despite the overall decline, the actual number of housing starts in urban centres with a population over 10,000 witnessed a 13% year-over-year increase in January 2024, jumping to 14,878 units from 13,220 units in January 2023. This growth is primarily attributed to a surge in multi-unit starts, particularly noticeable in Toronto. Toronto’s housing starts skyrocketed by 49% on a year-over-year basis, marking a significant contribution to the overall number of housing starts for the month. Conversely, Vancouver and Montreal saw decreases in their housing starts by 44% and 6%, respectively, highlighting the variability across different metropolitan areas.

Bob Dugan, CMHC’s Chief Economist, emphasized the mixed nature of the January 2024 data, noting the decline in the SAAR of housing starts but also acknowledging the robust growth in actual starts on a year-over-year basis, driven mainly by multi-unit projects in Toronto. According to Dugan, the number of housing starts in January 2024 was the second highest for the month since 1990, underscoring the dynamic nature of Canada’s housing market.

Key data from the report includes an 11% decrease in the monthly SAAR of total urban housing starts, with a significant 14% reduction in multi-unit urban starts, whereas single-detached urban starts saw a marginal increase of 0.08%. Rural starts were estimated at 15,470 units for the month. Toronto’s housing market stood out with a staggering 179% increase in SAAR housing starts, fueled by a substantial rise in multi-unit projects. In contrast, Montreal and Vancouver faced declines in their housing starts, attributed mainly to decreases in multi-unit starts.

Source: woodindustry.ca