Housing starts trended to its highest level of the year

The trend in housing starts was 210,038 units in November 2018, compared to 206,460 units in October 2018, according to a news release from Canada Mortgage and Housing Corporation (CMHC). The number of housing starts is an economic indicator that reflects the number of privately owned new single-family houses, townhomes or condominiums which started construction during a select time period.

“The national trend in housing starts increased in November, following four consecutive months of decline,” says Bob Dugan, CMHC’s chief economist. “While single-detached starts continued to trend lower in November, this was more than offset by a gain in the trend of multi-unit starts following several months of weakness.”

Toronto

Total housing starts during November trended to its highest level so far in 2018, mainly due to a surge in condominium apartment starts. The downward trend in single-detached homes persisted in November as a result of fewer new home sales in the year prior. Fewer site openings and high prices have curtailed sales of single-detached homes in recent years.

Oshawa

Total housing starts trended higher as the Oshawa CMA saw the most starts for the month of November in almost three decades. Strong multi-unit starts, particularly in the City of Oshawa, offset the decline in the single-detached starts trend. Higher house prices continue to increase the popularity of relatively more affordable higher density housing.

Hamilton

While total housing starts in Hamilton trended down for the second consecutive month in November, they remained at an elevated level due to strength in the row and apartment segments. Row starts are outperforming in Hamilton because they attract buyers that can afford an average-priced home. A number of those buyers chose to purchase a new row home rather than a resale single-detached home listed at the same price point, as most single-detached homes in that price range were in need of significant updating.