Canada Housing January 2020

Canada

Canada: Housing starts rise, beating expectations on milder-than-normal weather in January

February 10, 2020

Housing starts increased to 213,224 units on a seasonally-adjusted annualized rate (SAAR) basis in January, according to the Canada Mortgage and Housing Corporation (CMHC), up from December’s revised 195,892-unit reading (previously reported: 197,329), and above analysts’ expectations of 205,000 units. January’s rise was driven by a sharp pick-up in multiple urban starts. That being said, abnormally-mild weather in central Canada flattered the headline print in January.

Meanwhile, the six-month average of housing starts on a SAAR basis fell to 210,195 units in January from 212,212 units in December.

Going forward, rapid population growth, favorable borrowing costs and government measures supporting first-time home buyers should continue to drive housing starts.

In its annual Housing Market Outlook released in October, the CMHC projected housing starts would range between 194,000–204,300 units in 2020 and between 192,900–206,300 units in 2021. FocusEconomics Consensus Forecast participants, meanwhile, expect 205,000 housing starts in 2020, before moderating to 201,000 units in 2021.


Author:, Economist

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Canada Housing Starts January 20 20

Note: Monthly housing starts and six-month trend in monthly housing starts, both at seasonally-adjusted annualized rate.
Source: Canada Mortgage and Housing Corporation (CMHC).


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