Canada: Housing starts surge in November
December 15, 2020
Housing starts rose to 246,033 units on a seasonally-adjusted annualized rate (SAAR) basis in November, according to the Canada Mortgage and Housing Corporation (CMHC), up from October’s 215,134-unit reading. November’s improvement was driven by a sharp increase in multiple-detached urban starts, while single-units fell in the month.
Meanwhile, the six-month average of housing starts in urban areas increased to 231,491 units in November from 222,989 units in October. Commenting on November’s bumper reading, Royce Mendes a senior economist at CIBC Economics, noted:
“While other parts of the economy are being gripped by the second Covid wave, housing starts shrugged off any challenges and reaccelerated in November. The lofty pace of 246K was not only the second highest print this year, it was the second highest monthly reading since 2017[…] The resiliency of housing construction in the face of a number of headwinds will support the housing component of GDP in the fourth quarter in contrast to the real estate industry, which will likely drag it lower with Covid restrictions challenging home sales.”
Author: Steven Burke, Economist