According to Canada Mortgage and Housing Corporation (CMHC), the rate of Canadian housing starts slowed in October.
The national housing agency says the seasonally adjusted rates (SAAR) of total housing starts in Canada was down 11 per cent, to 267,055 units in October compared to September’s 2022 high of 298,811.
New data from CMHC showed the SAAR of total urban starts also declined, down 11 per cent to 245,234 units in October. Multi-unit urban starts decreased 13 per cent to 188,189 units, while single-detached urban starts fell four per cent to 57,045 units. Rural starts were estimated at a seasonally adjusted annual rate of 21,821 units.
In a news release, Bob Duggan, CMHC chief economist, said, “Monthly SAAR declined in October, while the six-month trend in housing starts slightly increased. October’s decrease in monthly SAAR housing starts in Canada’s urban areas was driven by both lower multi-unit and single-detached starts.”
According to Dugan, among Montreal, Toronto, and Vancouver, Montreal was the only market to post an increase in total SAAR housing starts, driven by a 19 per cent increase in multi-unit activity. Toronto was down 47 per cent, and Vancouver was down 19 per cent, contributing to the overall monthly decline. “Despite this, housing starts activity remains elevated in Canada in 2022,” Dugan says.
… and compared to the 10 year average for October? Or last yr?
Ontarios opening up of lands for development is a good start to help bring about housing supply growth – but the real problem is inflation – the affordability index is destroying low/middle income home ownership – first time buyers are the financial foundation of residential sales – as their purchase is a critical part of most home sale chains – if you take out 1000 first time buyers you result in 5000 home sales being delayed – flossing a market and forcing desperate sellers to drop prices and see their equity destroyed – for many that is not recoverable.
Home ownership needs to be declared the right of every Canadian. Mortgage financing needs to be controlled and segregated from consumer discretionary spending – the massive jumps in mortgage rates has increased a 400000$ mortgage monthly payment by over 1000$/ month ( after tax income). Worse if it is sold they won’t qualify for another mortgage of the same size.
2023 is going to get way worse and many more middle class will soon be joining the homeless class