Canada’s housing market showed unexpected vigor in November, with housing starts rising 8% to a seasonally adjusted annual rate of 262,443 units, according to data released by the Canada Mortgage and Housing Corporation on Monday. This increase, primarily fueled by multi-unit projects in Quebec, Alberta, and British Columbia, surpassed economists’ expectations and marked a significant upturn from October’s figures.
The surge was particularly pronounced in urban centers, where multi-unit starts, including condominiums and apartments, jumped 11% to 195,281 units. Single-detached urban starts also saw a modest increase of 4% to 49,802 units. This robust activity in November has pushed the year-to-date total to 210,912 starts, a 3% increase compared to the same period in 2023.
Mathieu Laberge, CMHC’s Chief Economist, emphasized the regional disparities driving this growth. “While Alberta, Québec and the Atlantic provinces are still pushing the national year-to-date starts higher, Canada still needs major increases in supply growth to restore affordability in our urban centres,” he stated.
Despite the monthly surge, the six-month trend in housing starts remained relatively stable, with a slight decrease of 0.3% to 243,268 units in November. This trend measure, which provides a more comprehensive view of the market, suggests underlying stability in the housing sector.
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The Bank of Canada’s recent interest rate cuts appear to be reinvigorating the housing market, which had previously shown signs of sluggishness. As inflation aligns with the central bank’s 2% target, this uptick in housing starts could signal a broader economic recovery.
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