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

Residents speak out against proposed Parksville affordable housing development

Environment a primary concern; land is largely on a 200-year-old floodplain away from city centre

‘Epic sky palace’: Parksville businesses grant wish for young boy recovering from cancer

Eleven-year-old Kai Hennessey receives treehouse of his dreams

PQB crime report: RCMP on hunt for prowler, counterfeiters, car thieves

Police received 203 complaints the week of Dec. 29 to Jan. 4

Power lines cut as thieves strike Parksville veterinary hospital

‘Thankfully there weren’t any animals or staff in the clinic when this happened’

VIDEO: Trudeau insists Iran respect families’ wishes when it comes to burials

All 176 people on board the Ukraine International Airlines flight PS752 were killed

Boy, 13, arrested after alleged assault involving girl at B.C. middle school

Boy alleged to have used ‘inappropriate levels of force’ to injure the girl

B.C. premier talks forestry, service needs with handful of northern mayors in Prince George

Prince George meeting completes premier’s tour of Kitimat, Terrace, Fort St. James and Quesnel

Advocates call hospital parking fees a ‘shakedown’ after learning most Island tickets are waived

Victoria General and Royal Jubilee hospitals among the most ticketed on the Island

B.C. player becomes only second Canadian to enter Hall of Fame of Baseball

Walker received 76.6 percent of the Baseball Writers of America Association vote

Nanaimo hospital’s new 5,000-kilogram MRI magnet delivered

$1.97-million magnet will boost NRGH medical imaging capabilities

Police suspect foul play in Cowichan Tribes death

Police are looking at foul play in relation to a death on… Continue reading

B.C. asks health-care staff to be ‘vigilant’ when screening for coronavirus

This comes after U.S. health officials confirmed a case of the virus in Washington State

Most Read