Housing Starts Rise in May

June 8, 2009



OTTAWA — Housing starts were up in May, meaning that starts have now risen in two of the last three months — a positive sign that the Canadian housing market’s slide may be coming to an end. The seasonally adjusted annual rate of housing starts increased to 128,400 units in May, from 117,600 units in April, according to the Canada Mortgage and Housing Corporation. The 9.2 per cent increase follows a 13.7 per cent increase achieved in March and a 20 per cent decrease in April.
The CMHC is expecting starts to improve throughout 2009 and beyond, eventually falling in line with demographic demand which it pegs at around 175,000 units per year.
Urban multiple-family and single-family starts were coincidently both up 11.1 per cent.
“The increase in May is broadly based, encompassing both the singles and multiples segments,” said Bob Dugan, Chief Economist at the CMHC’s Market Analysis Centre.
Ontario was the driving force behind the national rate rise, as urban starts were up 22 per cent in the province. The Prairies were next with starts rising by 16.8 per cent, followed by Atlantic Canada with a 7.3 per cent rise and Quebec with a 3.3 per cent increase. British Columbia saw a five per cent decline in its SAAR of new home starts.
Rural starts remained flat with an estimated SAAR of 20,600 units in May.