Canadian Housing Starts Up in January

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Canadian Housing Starts Trended Higher in January

The trend in housing starts was 244,963 units in January 2021, up from 238,747 units in December 2020. This trend measure is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.

“The national trend in housing starts increased in January. Both single- and multi-family SAAR starts rebounded strongly in January from declines in December, driving the overall trend higher. Single-family starts were particularly strong in Montréal, reaching their highest level since February 2008.”

Bob Dugan, CMHC’s chief economist

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a more complete picture of Canada’s housing market. In some situations, analyzing only SAAR data can be misleading, as the multi-unit segment largely drives the market and can vary significantly from one month to the next.

The standalone monthly SAAR of housing starts for all areas in Canada, excluding Kelowna CMA, was 281,389 units in January, an increase of 22.7% from 229,350 units in December. Including Kelowna CMA, the stand-alone monthly SAAR was 282,428 units in January, an increase of 23.1% from December.

Rural starts were estimated at a seasonally adjusted annual rate of 15,551 units (with and without Kelowna CMA).

As Canada’s authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

SOURCE Canada Mortgage and Housing Corporation

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