Canadian Mortgage News

January 2002 National News Archive

Rate of Housing Starts Up 10.4% in October

OTTAWA, Ontario, November 8, 2002 — The seasonally adjusted annual rate¹ of housing starts in Canada increased 10.4% in October to 220,400 units from a revised² 199,700 units in September, according to Canada Mortgage and Housing Corporation (CMHC).

Urban multiple starts rose 21.4% to an annual rate of 84,100 units in October from 69,300 in September, while urban singles rose 6.9% to 112,400 units from 105,100 units. Rural starts in October were estimated at an annual rate of 23,900 units.

"October's annual rate of housing starts, highest since March 1990, is evidence that the housing industry is benefiting from strong employment growth and low mortgage rates this year", said Michel Laurence, Chief Economist at CMHC's Market Analysis Centre. "The increase in the annual rate of housing starts in October relative to September, which was broadly-based across the country, suggests housing and other related industries will remain positive factors for Canadian economic growth in the fourth quarter."

Estimated actual urban housing starts for January to October this year are 27.6% higher than for the same period last year (149,563 units compared with 117,207 units). The single-detached market increased 34.5% while multiples increased 19.1%.

¹ All starts figures in this release, other than actual starts, are seasonally adjusted annual rates (SAAR) that are monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels.
² Figures for the most recent month are preliminary and subject to revisions due to corrections or updates from quarterly enumeration or sampling results.

Special note: Prior to July 2002, the CMHC Starts and Completions Survey consisted of a monthly enumeration of new housing activity in urban centres with a population of 10,000 persons and over. As of July 2002, the survey will be conducted monthly in urban centres with a population of 50,000 persons and over and quarterly in urban centres with a population of 10,000 to 49,999 persons. Statistical models will be used to estimate provincial and national housing starts in urban centres with a population of 10,000 persons and over, on a monthly basis.

The methodology is unchanged for estimating housing starts in rural areas (areas other than urban centres with a population of 10,000 persons and over.) In these areas, a sample survey is used on a quarterly basis. As was the case in the past, statistical models continue to be used to estimate national housing starts in all areas on a monthly basis.

Michel Laurence
CMHC
(613) 748-2737
mlaurenc@cmhc-schl.gc.ca

Atlantic provinces: Alex MacDonald, CMHC, (902) 426-8964, amacdona@cmhc-schl.gc.ca
Quebec: Kevin Hughes, CMHC, (514) 283-4488, khughes@cmhc-schl.gc.ca
Ontario: Alex Medow, CMHC, (416) 218-3344, amedow@cmhc-schl.gc.ca
Prairie provinces: Richard Corriveau, CMHC, (403) 515-3005, rcorrive@cmhc-schl.gc.ca
British Columbia: Cameron Muir, CMHC, (604) 737-4144, cmuir@cmhc-schl.gc.ca

Source: CMHC
* Seasonally adjusted annual rates
** Urban centres with a population of 10,000 persons and over.
Detailed data available upon request.

News source: Canada Mortgage and Housing Corporation (CMHC)