July 16, 2021 | 09:13
Housing Starts Down But Not Out
Canadian housing starts fell 1.5% to 282,070 annualized in June. While momentum is moderating after surpassing the 300k-mark in January for the first time on record, the level still remains historically high. The six-month moving average hit 293,567, topping building booms in the 1970s and 1980s. The volatile multis rose for the second straight month, up 0.6%. Meantime, single-family homes, which have fuelled much of the price gains during the pandemic, fell 8.5%.
Most provinces posted a drop, though starts in B.C. jumped for the second month in a row, up 43% to 68.1k annualized and not too far from March’s record high of 71.2k. And, Vancouver, Toronto and Montreal recorded strong growth, driven by the multi-family segment.
Bottom Line: The housing market has been one key driver in the recovery. While the momentum of new home construction has moderated from the rapid pace seen through the first quarter of this year, starts remain at historically elevated levels. Homebuilding is well-supported amid still-robust housing demand.