Houses under construction in Toronto on Friday, June 26, 2015. Canada Mortgage and Housing Corp. says the annual pace of housing starts increased in October. The national housing agency says the seasonally adjusted annual rate of housing starts rose to 214,875 units last month compared with 208,715 in September. THE CANADIAN PRESS/Graeme Roy

Houses under construction in Toronto on Friday, June 26, 2015. Canada Mortgage and Housing Corp. says the annual pace of housing starts increased in October. The national housing agency says the seasonally adjusted annual rate of housing starts rose to 214,875 units last month compared with 208,715 in September. THE CANADIAN PRESS/Graeme Roy

CMHC says annual pace of housing starts climbed higher in October

The seasonally adjusted annual rate of housing starts rose to 214,875 units last month

The annual pace of housing starts increased three per cent in October compared with September, Canada Mortgage and Housing Corp. said on Tuesday, although the increase was less than some economists predicted.

The seasonally adjusted annual rate of housing starts rose to 214,875 units last month compared with 208,715 in September, the national housing agency said. Economists surveyed by financial data firm Refinitiv had on average expected an annual rate of 222,000.

CMHC said that single-detached houses in cities such as Toronto and Montreal contributed to the upswing in overall housing starts.

“Homebuilding seems to be normalizing across most of the country, after a sizzling summer,” BMO economist Priscilla Thiagamoorthy in a note to clients, reacting to Tuesday’s data.

“While we could see a softer condo market, rising demand for single-detached homes, supported by low interest rates and teleworkers, will still keep the housing market resilient overall.”

The annual rate of urban starts rose 3.5 per cent in October to 202,584 units. The pace of urban starts of apartments, condos and other types of multiple-unit housing projects edged down 0.2 per cent to 144,796, while urban starts of single-detached homes rose by 14.3 per cent to 57,788. Rural starts were estimated at a seasonally adjusted annual rate of 12,291 units.

“For the last decade, highrise construction fuelled housing starts thanks to millennials and international migrants vying for a little slice of the sky,” wrote Thiagamoorthy.

“But now, with immigration flows slowing, and a shift in preference for larger suburban homes, we could see a bit of a slowdown in condo construction.”

Overall, the six-month moving average of the monthly seasonally adjusted annual rates of housing starts was 222,734 in October, up from 214,372 in September.

TD economist Rishi Sondhi noted that the Prairies drove October’s increase, with strong gains in Manitoba and Alberta, on top of an increase in Ontario.

CHMC’s data on new home building comes on the heels of Monday’s release of existing home resales from the Canadian Real Estate Association. CREA’s data showed October home resales were down from a record high in September, but still more than 30 per cent above last year’s levels. One reason was that people were seeking out suburban houses with more space as the pandemic required people to stay home.

“Relative to other industries, homebuilding has so far breezed through the pandemic, and October’s healthy print is yet another example,” wrote Sondhi in a note to clients on Tuesday.

“Notably, single-detached starts are beginning to pick up, which suggests that builders may be reacting to the outperformance in detached home sales observed during the pandemic.”

Anita Balakrishnan, The Canadian Press

CoronavirusHousing

Just Posted

Gerry Vowles (left), Michael Cook, and Dave Sinclair were awarded “Dominion Command Presidential Citations” June 17 in Cloverdale. The rare awards were given out for “exemplary service to the Legion.” (Photo: Malin Jordan)
Three B.C. legionnaires awarded ‘Presidential Citations’

Ceremony took place in Cloverdale June 17

A cache of 89 crabs was discovered during a 2018 compliance inspection at South Surrey’s Elgin Park Marina. (Contributed photo)
$7,500 fine for illegal crab harvest discovered in South Surrey

Laird Goddyn found guilty in Surrey Provincial Court following 2018 investigation

City of Surrey photo
Surrey starts Slow Streets pilot project

Speed limits have been reduced in six Surrey neighbourhood zones for one year to monitor impact on residents

Preliminary site plan for a proposed 50-space childcare facility at Scott Road and 90th Avenue in North Delta. (Bunt & Associates image)
50-space childcare facility proposed for North Delta

Daycare proposed at Scott Road and 90th Avenue now headed to public hearing

Gymnast Shallon Olsen. (Photo: olympic.ca)
Olympics-bound Surrey gymnast Shallon Olsen enters sports hall of fame – in Coquitlam

She was the youngest member of Team Canada when she made her Olympic debut at Rio 2016

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

A Heffley Creek peacock caught not one - but two - lifts on a logging truck this month. (Photo submitted)
Heffley Creek-area peacock hops logging trucks in search of love

Peacock hitched two lifts in the past month

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

The first suspension bridge is the tallest in Canada, with a second suspension bridge just below it. The two are connected by a trail that’s just over 1 km. (Claire Palmer photo)
PHOTOS: The highest suspension bridges in Canada just opened in B.C.

The Skybridge in Golden allows visitors to take in views standing at 130 and 80 metres

BC Green Party leader and Cowichan Valley MLA Sonia Furstenau introduced a petition to the provincial legislature on Thursday calling for the end of old-growth logging in the province. (File photo)
BC Green leader Furstenau introduces old-growth logging petition

Party calls for the end of old-growth logging as protests in Fairy Creek continue

B.C. Premier John Horgan leaves his office for a news conference in the legislature rose garden, June 3, 2020. (B.C. government photo)
B.C. premier roasted for office budget, taxing COVID-19 benefits

Youth addiction law that triggered election hasn’t appeared

A vial containing the Moderna COVID-19 vaccine is shown at a vaccination site in Marcq en Baroeul, outside Lille, northern France, Saturday, March 20, 2021. THE CANADIAN PRESS/AP/Michel Spingler
mRNA vaccines ‘preferred’ for all Canadians, including as 2nd dose after AstraZeneca: NACI

New recommendations prioritizes Pfizer, Moderna in almost all cases

Most Read