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

cat
Spirit’s Respite Ranch near Stettler provides support through animal interaction

‘I also come from a family of doers - if something that is needed isn’t there, you just figure it out’

SARS-CoV-2 virus particles, which causes COVID-19, emerge from the surface of cells isolated from a patient in the U.S. and cultured in a lab in a 2020 electron microscope image. THE CANADIAN PRESS/AP-HO, National Institute of Allergy and Infectious Diseases - Rocky Mountain Laboratories
Alberta now has 17,743 active cases of COVID-19

Province now has 17,743 active cases

town
Town of Castor meeting highlights from the Nov. 23rd meeting

Castor’s town council has approved an interim budget going into 2021

county
The County of Paintearth Council has approved the 2021 operational and capital budgets

Capital spending approved for 2021 amounts to just over $3.8 million

Idyllic winter scenes are part of the atmosphere of the holiday season, and are depicted in many seasonal movies. How much do you know about holiday movies? Put your knowledge to the test. (Pixabay.com)
QUIZ: Test your knowledge of holiday movies and television specials

The festive season is a time for relaxing and enjoying some seasonal favourites

Ten-month-old Aidan Deschamps poses for a photo with his parents Amanda Sully and Adam Deschamps in this undated handout photo. Ten-month-old Aidan Deschamps was the first baby in Canada to be diagnosed with spinal muscular atrophy through Ontario’s newborn screening program. The test was added to the program six days before he was born. THE CANADIAN PRESS/HO, Children’s Hospital Eastern Ontario *MANDATORY CREDIT*
First newborn tested for spinal muscular atrophy in Canada hits new milestones

‘If Aidan had been born any earlier or anywhere else our story would be quite different’

People line up at a COVID-19 assessment centre during the COVID-19 pandemic in Scarborough, Ont., on Wednesday, December 2, 2020. Toronto and Peel region continue to be in lockdown. THE CANADIAN PRESS/Nathan Denette
COVID-19 vaccine approval could be days away as pressures mount on health-care system

Many health officials in regions across the country have reported increasing pressures on hospitals

File Photo
Sylvan Lake Town Council squashes mask bylaw

The bylaw did not make it past first reading, after a 4-3 vote defeated the motion

A logo for Netflix on a remote control is seen in Portland, Ore.,Aug. 13, 2020. Experts in taxation and media say a plan announced Monday by the government will ultimately add to the cost of digital services and goods sold by foreign companies. THE CANADIAN PRESS/AP-Jenny Kane
‘Netflix tax’ for digital media likely to raise prices for consumers, experts say

The government says Canadian companies already collect those taxes when they make digital sales

Gaming content was big on YouTube in 2020. (Black Press Media files)
What did Canadians watch on Youtube during isolation? Workouts, bird feeders

Whether it was getting fit or ‘speaking moistly,’ Canadians had time to spare this year

A teacher places the finishing touches on the welcome sign at Hunter’s Glen Junior Public School which is part of the Toronto District School Board (TDSB) during the COVID-19 pandemic in Scarborough, Ont., on Sept. 14, 2020. THE CANADIAN PRESS/Nathan Denette
Hindsight 2020: How do you preserve a year many Canadians would rather forget?

Figuring out how to preserve the story of the pandemic poses a series of challenges

Team Manitoba celebrate after defeating Team Ontario to win the Scotties Tournament of Hearts in Moose Jaw, Sask., Sunday, Feb. 23, 2020. Curling Canada wants Calgary’s Canada Olympic Park to be a curling hub for the season’s top events. THE CANADIAN PRESS/Jonathan Hayward
Calgary facility set to become curling hub during pandemic

Curling Canada has provisional approval for Calgary’s hub-city concept from Alberta Health

Most Read