Multi-residential construction projects spurred an increase in Canadian housing starts in September, says the Canada Mortgage and Housing Corporation.
Multi-unit urban starts increased 10% on a quarterly basis to 207,689 units in September as overall commencements rose 8% to 270,466 from August.. Single-detached home construction starts in urban centres increased 3% to 43,077 units.
All figures are the seasonally adjusted annual rate.
“It seems the current higher interest rate environment has not yet had the expected negative impact on multi-unit construction activity so far in 2023,” said Bob Dugan, CMHC’s chief economist, in a news release.
Montreal starts soared 98% and Toronto starts jumped 20%. But Vancouver saw overall declines due to fewer multi-residential construction launches.
Vancouver recorded a 17% overall reduction and 18% decrease in multi-unit starts.
On a year-to-date basis, Vancouver overall starts were up 37% from the first nine months of 2022, while Toronto launches climbed 22%. But on a monthly basis, overall construction starts dropped 8% from September 2022.
Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.