Canada: Housing starts jump in September
October 8, 2016
Seasonally-adjusted annualized housing starts registered 220,600 units in September, according to the government-owned Canada Mortgage and Housing Corporation (CMHC). The figure marked a massive 19.8% increase from August’s revised 184,200 units (previously reported: +182,700 units) and the total level of units reached was the strongest result since September 2015. Markets had expected a weaker reading of 190,000 units.
The six-month moving average in housing starts was 199,500 in September, a 1.5% increase from the previous month’s 196,500. The CMHC commented that, "Housing starts were on an upward trend in September, as residential construction increased across the country with the exception of Ontario, where the multiples segment softened to levels that are more consistent with household formation. Quebec saw the largest gain in housing starts due to the development of new rental apartments intended for seniors. That said, Quebec’s growing apartment stock emphasizes the importance of inventory management.”
Author: Luis Lopez Vivas, Economist