Canadian Housing Starts Exceed Expectations in September
Resilient Canadian Housing Market Shows Strong Growth
Canadian housing starts had a remarkable increase in September, defying expectations and demonstrating resilience despite higher interest rates. The Canada Mortgage and Housing Corp reported that the seasonally adjusted annualized rate of housing starts rose to 270,466 units, marking an 8% growth from August. This figure surpassed the anticipated 240,000 starts predicted by TD Securities.
Urban Multi-Family Units Drive Growth
A key factor in this rise was the surge in urban multi-family units, including condominiums and row houses, which experienced a 10% increase, reaching 207,689 units. This represents the second-highest monthly figure recorded this year. Additionally, single detached units saw a 3% rise, totaling 43,077 units.
Regional Variations in Housing Starts
Different regions in Canada showed varying levels of growth. Montreal and Toronto experienced significant housing start growth, with an impressive 98% and 20% respectively. In contrast, Vancouver saw a decline of 17%.
Robust Multi-Unit Construction Activity
Bob Dugan, chief economist for Canada’s national housing agency, highlighted the robustness of multi-unit construction activity, which remains unimpeded despite prevailing higher interest rates. This signifies the resilience of the Canadian housing market.
Sustained Growth in the Canadian Housing Market
In addition to the month-on-month figures, the six-month moving average of housing starts, a trend measure utilized by economists and analysts, increased by 3.9% to a total of 254,006 units in September. This suggests sustained growth in the Canadian housing market over a longer period.
Summary:
Canadian housing starts in September surpassed expectations, indicating the strength of the housing market despite higher interest rates. Urban multi-family units and regional variations played a significant role in this growth. The Canadian housing market continues to exhibit resilience and sustained growth, promising a positive outlook for the future.
