Toronto Housing Starts Post Healthy 2016

MarketWired.com
Jan. 10, 2017

Housing starts in the Toronto Census Metropolitan Area (CMA) trended at 37,269 units in December compared to 39,230 in November according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR) of housing starts.

"Compared to earlier in the year, new home construction slowed down in Toronto during the final month of 2016," said Andrew Scott, CMHC Senior Market Analyst for the GTA. "While fewer apartment starts have led to an overall annual decline when compared to 2015, single-detached home starts were up by 16%, hitting their highest level in nearly a decade. This demand for new homes is supported by improved economic conditions and migration."

CMHC uses the trend measure as a complement to the monthly SAAR of housing starts to account for considerable swings in monthly estimates and obtain a complete picture of the state of the housing market. In some situations, analysing only SAAR data can be misleading in some markets, as they are largely driven by the multiples segment of the markets which can be quite variable from one month to the next.

The standalone monthly SAAR was 34,396 units in December, up from 30,560 units in November. The increase was the result of greater apartment starts.

The City of Toronto recorded the highest number of starts among municipalities in December, as construction of many new apartment units started. Not far behind was Brampton, which resulted from mostly single-detached and row unit starts. This was followed by Mississauga, where construction started on a number of apartment units. The municipalities of East Gwillimbury, New Tecumseth and Brampton led the increase in single-detached construction in 2016. Meanwhile, the decline in apartment construction was the result of fewer apartments built in suburban areas like Vaughan and Mississauga.

Preliminary Housing Starts data is also available in English and French at the following link: Preliminary Housing Starts Tables

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

For more information, visit our website at www.cmhc.ca or follow us on Twitter, YouTube, LinkedIn and Facebook.