Multi-unit projects drive a significant uptick in construction activity
In February, the seasonally adjusted annual rate (SAAR) of housing starts across all areas in Canada saw a 14 percent increase, reaching 253,468 units, up from January's 223,176 units, as reported by the Canada Mortgage and Housing Corporation (CMHC).
This uptick is further underscored by the six-month trend in housing starts, which slightly grew by 0.4 percent, moving from 244,638 units in January to 245,665 units in February.
The analysis of urban centers, specifically those with a population of 10,000 and over, revealed an 11 percent rise in actual housing starts, totaling 17,495 units in February, a notable increase from February 2023's figure of 15,822 units.
This growth was primarily driven by a significant 16 percent upswing in multi-unit starts, despite a 14 percent decrease in single-detached starts during the same period.
The disparity in housing starts was pronounced in major Canadian cities. Toronto and Vancouver reported a 10 percent and an impressive 82 percent year-over-year increase in February's actual housing starts, respectively, largely fueled by the heightened activity in multi-unit construction.
On the contrary, Montreal saw a 9 percent reduction in actual starts, attributed to declines across both housing segments.
“Following two consecutive monthly declines, both the SAAR and Trend of housing starts increased in February,” stated Bob Dugan, CMHC's chief economist.
“This was due to growth in actual year-over-year starts, driven by higher multi-unit starts, particularly in Toronto and Vancouver. As the national housing shortage continues, the focus for developers continues to shift towards multi-unit construction in Canada's major centres.”
In terms of specifics, the monthly SAAR of total urban housing starts experienced a 15 percent increase, with 238,633 units recorded. Breakdowns show a 20 percent rise in multi-unit urban starts to 196,392 units, while single-detached urban starts saw a slight 2 percent decline to 42,241 units.
Additionally, the rural starts' monthly SAAR estimate stood at 14,835 units.
Regionally, Vancouver and Toronto led with notable increases in total SAAR housing starts of 79 percent and 15 percent, respectively, primarily due to substantial gains in multi-unit starts.
Conversely, Montreal encountered a 31 percent drop, significantly impacted by reductions in both single-detached and multi-unit starts.
