Houses under construction in Toronto on Friday, June 26, 2015. Canada Mortgage and Housing Corp. says the annual pace of housing starts increased in October. The national housing agency says the seasonally adjusted annual rate of housing starts rose to 214,875 units last month compared with 208,715 in September. THE CANADIAN PRESS/Graeme Roy

Houses under construction in Toronto on Friday, June 26, 2015. Canada Mortgage and Housing Corp. says the annual pace of housing starts increased in October. The national housing agency says the seasonally adjusted annual rate of housing starts rose to 214,875 units last month compared with 208,715 in September. THE CANADIAN PRESS/Graeme Roy

CMHC says annual pace of housing starts climbed higher in October

The seasonally adjusted annual rate of housing starts rose to 214,875 units last month

The annual pace of housing starts increased three per cent in October compared with September, Canada Mortgage and Housing Corp. said on Tuesday, although the increase was less than some economists predicted.

The seasonally adjusted annual rate of housing starts rose to 214,875 units last month compared with 208,715 in September, the national housing agency said. Economists surveyed by financial data firm Refinitiv had on average expected an annual rate of 222,000.

CMHC said that single-detached houses in cities such as Toronto and Montreal contributed to the upswing in overall housing starts.

“Homebuilding seems to be normalizing across most of the country, after a sizzling summer,” BMO economist Priscilla Thiagamoorthy in a note to clients, reacting to Tuesday’s data.

“While we could see a softer condo market, rising demand for single-detached homes, supported by low interest rates and teleworkers, will still keep the housing market resilient overall.”

The annual rate of urban starts rose 3.5 per cent in October to 202,584 units. The pace of urban starts of apartments, condos and other types of multiple-unit housing projects edged down 0.2 per cent to 144,796, while urban starts of single-detached homes rose by 14.3 per cent to 57,788. Rural starts were estimated at a seasonally adjusted annual rate of 12,291 units.

“For the last decade, highrise construction fuelled housing starts thanks to millennials and international migrants vying for a little slice of the sky,” wrote Thiagamoorthy.

“But now, with immigration flows slowing, and a shift in preference for larger suburban homes, we could see a bit of a slowdown in condo construction.”

Overall, the six-month moving average of the monthly seasonally adjusted annual rates of housing starts was 222,734 in October, up from 214,372 in September.

TD economist Rishi Sondhi noted that the Prairies drove October’s increase, with strong gains in Manitoba and Alberta, on top of an increase in Ontario.

CHMC’s data on new home building comes on the heels of Monday’s release of existing home resales from the Canadian Real Estate Association. CREA’s data showed October home resales were down from a record high in September, but still more than 30 per cent above last year’s levels. One reason was that people were seeking out suburban houses with more space as the pandemic required people to stay home.

“Relative to other industries, homebuilding has so far breezed through the pandemic, and October’s healthy print is yet another example,” wrote Sondhi in a note to clients on Tuesday.

“Notably, single-detached starts are beginning to pick up, which suggests that builders may be reacting to the outperformance in detached home sales observed during the pandemic.”

Anita Balakrishnan, The Canadian Press

CoronavirusHousing

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

THE CANADIAN PRESS/Alex Panetta
Economists “cautiously hopeful” for economic recovery in Alberta

Charles St. Arnaud says Alberta’s recover will rebound along with roll-out of the COVID-19 vaccine

Calumet Curling Club. (Facebook photo)
Calumet Curling Club wins $20k in 50/50 draw at Scotties

Small curling club between Ponoka and Bashaw wins big

Alberta’s chief medical officer of health Dr. Deena Hinshaw acknowledged that Friday would be one year since the first case of COVID-19 was identified in the province. (photography by Chris Schwarz/Government of Alberta)
Three more Red Deer COVID-19 deaths, 331 active cases in Alberta

Red Deer is down to 362 active cases of the virus

Caitlin Kraft, the sister of Jeffery Kraft, stands third from the left, holding a sign calling for the maximum sentence for Campbell, who is charged with manslaughter. (Photo by Paul Cowley)
UPDATED: Judge again rejects submission of 7-year sentence for slaying of Kraft

Tyler John Campbell charged with second-degree murder for December 2019 homicide

Caitlin Kraft, the sister of Jeffery Kraft, stands third from the left, holding a sign calling for the maximum sentence for Campbell, who is charged with manslaughter. (Photo by Paul Cowley)
UPDATED: Judge again rejects submission of 7-year sentence for slaying of Kraft

Tyler John Campbell charged with second-degree murder for December 2019 homicide

Walter Gretzky father of hockey hall-of-famer Wayne Gretzky waves to fans as the Buffalo Sabres play against the Toronto Maple Leafs during third period NHL hockey action in Toronto on Tuesday, Jan. 17, 2017. THE CANADIAN PRESS/Nathan Denette
Walter Gretzky, father of the Great One, dies at 82

Canada’s hockey dad had battled Parkinson’s disease and other health issues

This Dec. 2, 2020 photo provided by Johnson & Johnson shows vials of its Janssen subsidiary’s COVID-19 vaccine in the United States. THE CANADIAN PRESS/AP-Johnson & Johnson via AP
Canada approves Johnson & Johnson’s 1-shot COVID-19 vaccine

It is the 4th vaccine approved in Canada and the 1st that requires just a single dose

(AP Photo/Richard Vogel, File)
Pandemic stress, isolation key factors as to why Canadians turned to cannabis, alcohol

Study found that isolation played key role in Canadians’ substance use

A ” Justice for Jeff” T-shirt. (Photo submitted)
Rally to be held outside courthouse for slain Ponoka man

At what may be the last opportunity for Jeffery Kraft of Ponoka… Continue reading

The remains of Terry Bearden’s property before a demolition crew came in to remove debris. (Photo submitted)
Rimbey arson case may have a lead thanks to reward offered by owner

Anonymous tip alleges the fire was set by three local males

Backcountry skiers are dwarfed by the mountains as they make their way along a mountain ridge near McGillivray Pass Lodge located in the southern Chilcotin Mountains of British Columbia, Tuesday, Jan. 10, 2012. Avalanche Canada has issued a special warning to people who use the backcountry in the mountains of western Alberta and eastern British Columbia. THE CANADIAN PRESS/Jonathan Hayward
Avalanche Canada special warning for mountains in western Alberta, eastern B.C.

Avalanche Canada also says everyone in a backcountry party needs essential rescue gear

A vial of some of the first 500,000 of the two million AstraZeneca COVID-19 vaccine doses that Canada has secured through a deal with the Serum Institute of India in partnership with Verity Pharma at a facility in Milton, Ont., on Wednesday, March 3, 2021. THE CANADIAN PRESS/Carlos Osorio - POOL
Federal panel recommends 4-month gap between COVID vaccine doses due to limited supply

The recommendation applies to all COVID-19 vaccines currently approved in Canada

hands
The call is out in Rimbey to sign on with a group that is all about building connections

‘Already, we are building a network where we can rely on each other and help each other out’

Most Read