Canadian Mortgage News

January 2007 National News Archive

Housing Starts Strong in January

OTTAWA, Ontario, February 08, 2007 — The seasonally adjusted annual rate¹ of housing starts was 249,300 units in January, up from 212,600 units in December, according to Canada Mortgage and Housing Corporation (CMHC).

“Historically low mortgage rates, solid employment and income growth, and a high level of consumer confidence continue to support residential construction activity,“ said Bob Dugan, Chief Economist at CMHC’s Market Analysis Centre. “The volatile multiples segment bounced back in January, accounting for most of the growth this month. Although housing starts are expected to ease to 209,500 units in 2007, they will remain above the 200,000 mark for the sixth consecutive year.”

January’s seasonally adjusted annual rate of urban starts of 216,300 units was up 19.2 per cent from December. Urban multiples surged 31.4 per cent to 124,300 units in January, while singles jumped 5.9 per cent to 92,000 units.

Urban starts in January rebounded in all regions, with urban multiple starts growing at a double-digit pace. Urban singles starts were up overall, but declined in Quebec and British Columbia. The Atlantic region experienced the largest percentage increase in urban starts at 36.2 per cent

Rural starts in January were estimated at a seasonally adjusted annual rate of 33,000 units.

Compared to January 2006, actual starts in both rural and urban areas increased an estimated 12.2 per cent in January 2007 while actual starts in urban areas only were up an estimated 11.9 per cent. Actual single starts in urban areas were 14.3 per cent lower in January 2007 than they were a year earlier, with all regions showing a decline. Actual urban multiple starts in January 2007 were up 37.7 per cent over January 2006.

Canada Mortgage and Housing Corporation (CMHC) has been Canada’s national housing agency for more than 60 years. CMHC is committed to helping Canadians access a wide choice of quality, affordable homes, while making vibrant, healthy communities and cities a reality across the country. For more information, call 1-800-668-2642.

1 All starts figures in this release, other than actual starts, are seasonally adjusted annual rates (SAAR) — that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels.

Information on this release:

Bob Dugan
CMHC
613-748-4009
bdugan@cmhc-schl.gc.ca

For regional starts information contact:

Housing Starts, Actual and SAAR*

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)