Canadian housing starts jumped 8 per cent in October, due largely in part to increases in the multi-family sector and single-detached, according to the national housing agency.

Canada Mortgage Housing Corporation (CMHC) says the seasonally adjusted rate of housing starts in October was 240,761 units, up from 223,391 in September.

The multi-family sector was behind the gain, with urban starts up 7 per cent month-over-month to nearly 176,000 units, while single-detached urban starts increased 1 per cent, to 47,406 units.

GTA presales remain “exceedingly weak” 

“Even with October’s gain, the outlook for housing starts remains soft,” Rishi Sondhi, economist, TD Economics, writes. “This is largely due to the outsized weakness expected for Ontario, which will bring down the national figures. We’d note that over the last 12 months, starts have tumbled to levels last seen in 2020 in Ontario.”

Sondhi explains presales remain “exceedingly weak” in the Greater Toronto Area, with more of the same expected in 2025. “This is the key factor underpinning our forecast that starts will decline next year, even with homebuilding likely to hold up better in other parts of the country.”    

“Despite these results, we remain well below what is required to restore affordability in Canada’s urban centres,” Bob Dugan, CMHC 

The six-month trend in housing starts was flat in October at 243,522 units. 

“Actual year-to-date housing starts are similar to last year, but we continue to see higher activity in the Prairie provinces, Quebec and the Atlantic provinces, while Ontario and British Columbia have seen declines in all housing types,” explains Bob Dugan, CMHC chief economist, in a press release.

“The increases in the monthly SAAR in Toronto and Vancouver are a promising sign for Ontario and British Columbia, as they drove the national SAAR increase in October,” Dugan adds. “Despite these results, we remain well below what is required to restore affordability in Canada’s urban centres.”