Housing starts pick up in most regions

The pace of Canadian housing construction starts picked up nationally in September despite a decline in Ontario.

The Canada Mortgage and Housing Corp. says the seasonally adjusted annual rate of starts was 220,617 in September, up from 184,201 units in August. Click here for more from CMHC.

CMHC says construction of urban multiple-unit dwellings such as townhouses, condominiums and apartments were the main reason for the increase in most regions, such as in Quebec.

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Quebec saw the largest gain in housing starts last month, due to the development of new rental apartments for seniors. There were also increases in British Columbia, the Prairies and Atlantic Canada.

However, Toronto was an exception: its seasonally adjusted rate dropped to 30,232 units from 40,406 units in August, mainly as a result of fewer apartment starts. Plus, several smaller cities across the province also recorded declines from one month to the next.

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As a result, Ontario’s overall activity fell to 67,426 housing starts in September, from 70,262 units in August.

“The most [housing starts] recent reading is the strongest in a year,” says Nick Exarhos, economist and director at CIBC World Markets, in a research note. But, “it wasn’t enough to move the six-month average much (199,000 from 196,000). Permit figures had suggested a healthy outcome was in the cards, but today’s reading outstrips the pace in building intentions by a wide margin, and we would expect to see somewhat of a deceleration in the months ahead.”

Staff, with files from The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.