Pace of housing starts picks up

Canada Mortgage and Housing Corp. says the pace of housing starts picked up in November, pushing the six-month trend to the highest level in nearly a decade.

The Ottawa-based Crown corporation says construction of multiple-unit projects in Toronto has been a driving force behind the trend.

In November, the seasonally adjusted annualized rate of housing starts across Canada was 252,184 units - up from 222,695 units in October.

Multiple-unit urban starts accounted for 175,016 units on a seasonally adjusted basis, up 16.9 per cent, while single-detached urban starts were up 7.5 per cent to 60,396 units and rural starts were estimated at 16,772.

CIBC World Markets chief economist Avery Shenfeld said in a note that the size of the increase was “stunning” but it “doesn’t clash as much with other Canadian housing indicators as you might think.”

“Home sales have slowed, but with builders focused on condos that are started well after most of th units have been bought, it’s going to be a while before quieter sales offices mean fewer cranes on the horizon.”

CMHC’S six-month national housing starts trend rose to 226,270 units in November, from 216,642 units in October.

Ontario’s seasonally adjusted rate rose to 95,741 units in November from 57,916 units of all types in October.

Bob Dugan, CMHC’S chief economist, said the November trend was heavily influenced by construction of multiple units in Toronto.