Canada: Housing starts ease in July, but remain upbeat
August 17, 2021
Housing starts ticked down to 272,176 units on a seasonally-adjusted annualized rate (SAAR) basis in July according to the Canada Mortgage and Housing Corporation (CMHC), from June’s 281,200-unit reading. July’s slight fall was driven by a dip in single-detached urban starts, while multi-urban starts also fell over the previous month.
Meanwhile, the six-month average of housing starts in urban areas fell to 286,620 units in July from 293,085 units in June.
Commenting on the latest print, Royce Mendes, senior economist at CIBC World Markets, noted:
“The data on homebuilding is in line with our forecast that residential investment is set to contribute less to GDP in the third quarter, although housing activity will still remain at levels higher than what prevailed pre-pandemic.”