Toronto Pulled Housing Starts Up

Picture by M J M

CMHC informs - Canadian seasonally adjusted annual rate of housing starts was going up again in November, all thanks to Toronto. While the rate was 167,800 units in October 2010, November results moved it up to 187,200 units level.

Bob Dugan, Chief Economist at CMHC's Market Analysis Centre explains it clearly – it is Toronto! Urban starts increased by 82.8% in Ontario, because of several large apartment project launched in Toronto this November, multiple starts in Ontario added almost 30,000 units in the last month.

Urban starts in Canada grew by 14.6%, however all regions except Ontario recorded declines, mostly Atlantic Canada (24%), British Columbia (21.3%) and Quebec (15.2%). Only Prairie remained stable, with tiny 1.5% decrease. Urban multiple starts were up by 20.9% (101,800 units), single urban added 5.5% reaching 61,300 units.

November spike was exceptional; housing starts rate should come closer to the demographic demand rate, which is estimated as 175,000 units per anno.

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