CMHC reports annual pace of housing starts in Canada slowed in December

Analysts on average had expected an annual rate of 210,000 for December

Developers started building fewer homes than expected in December, mostly because of a decline in multi-unit projects, Canada’s housing agency said Thursday.

Canada Mortgage and Housing Corp. said the seasonally adjusted annual rate of housing starts came in at 197,329 in December, down from 204,320 in November.

Analysts on average had expected an annual rate of 210,000 for December, according to financial markets data firm Refinitiv.

Bob Dugan, CMHC’s chief economist, said multi-family starts in Toronto, Montreal and Ottawa were the main drags on starts, but stable activity in Vancouver and significant growth in Calgary helped offset those declines.

Starts in multi-unit dwellings in urban areas fell five per cent from November, including a 17 per cent decline in Ontario, while urban starts of single-detached homes edged up one per cent.

The six-month moving average of the overall monthly seasonally adjusted rate was 212,160 units in December, down from 219,921 in November.

“Housing starts lost a bit of steam toward the end of last year,” said RBC senior economist Josh Nye in a note.

The annualized pace for the fourth quarter as a whole came in at 201,000, compared with 220,000 in the prior two quarters, he noted.

But Nye said starts should be in the middle of the range for the year ahead as the market rebounds, helped in part by Canada’s fastest population growth rate since the early 1990s.

“That would be consistent with a resurgent housing market — which we see extending into this year — and strong demographics.”

CIBC senior economist Andrew Grantham said the slowing starts in the fourth quarter contributed to a deceleration in overall economic growth, but that starts should clock in slightly above the 200,000 mark this year.

“We expect that the combination of lower mortgage rates (compared to the start of last year) and solid population growth will support demand for housing in 2020,” he said in a note.

TD economist Rishi Sondhi said the drop in multi-unit starts was likely from past declines in pre-construction condo sales. Sondhi said the effects of past pre-construction sales declines would continue to restrain homebuilding in key markets this year.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Climbers compete for Choc and Chalk

Annual competition attracts more than 100

T.W. Paterson column: Hudson Bay Co.’s Dr. Benson marched to a different drummer

Chief Factor James Douglas soon banished him to the Columbia River

Cowichan resident with dementia breaks silence on stigma in Alzheimer Society campaign

“I don’t think I’ve encountered stigma as much as I’ve encountered a lack of understanding”

Cowichan’s Achurch named all-star MVP

LMG goalie and teammate Scott help VISL beat FVSL

Indian Day School survivors can now submit claims for $10K-$200K in compensation

Anyone who is part of the class action is being encouraged to start the process now

Kids across Canada more at risk of hospitalization from flu this season: doctor

Dr. Theresa Tam said influenza B does not usually peak until February or later

BC Ferries hybrid ships arrive in Victoria on Saturday

The battery-operated vessels will take over smaller routes

Theft victim confronts suspects with baseball bat on Vancouver Island

RCMP in Nanaimo seek to identify of two people alleged to have used a stolen credit card

Closed mills, housing surge support a positive forecast for lumber industries

B.C. lumber producers have closed mills accounting for 18% of province’s capacity, RBC report says

Good Samaritan pays part of rent for B.C. woman facing eviction in can-collecting dispute

Zora Hlevnjak, 76, supplements her pension by collecting cans and receiving public donations

Kelowna’s ‘Baby Mary’ finds biological parents after more than 30 years

Geneologist and DNA test helped her connect with her biological parents

Kelowna hotel to award couples for baby-making with Nooner deal

The deal includes a free stay every Valentine’s Day for the next 18 years

Clerk bruised, traumatized after armed robbery at Nanaimo liquor store

Few details on male suspect in Wednesday incident, says Nanaimo RCMP

One last blast of winter tonight for parts of the Island before temperatures on the rise

A snowfall warning is in effect Friday including east Vancouver Island.

Most Read