New home construction surged in July
The annual pace of new home construction rose nearly 16 per cent in July compared with June, the Canada Mortgage and Housing Corporation said.
CMHC said the seasonally adjusted annual rate of housing starts rose to 245,604 in July, up from 212,095 in June.
Canada’s long-run average is for about 200,000 new homes to be built every year, so the current pace is well ahead of that. The six month average now sits at 204,376 as of July, up from 199,778 in June.
Economists had been expecting the rate to come in at around 210,000, according to Bloomberg.
Most of the surge came from a boom in multiple-unit construction for things like condos and apartments, which rose 18.8 per cent to 184,431. Single detached urban starts climbed 12.3 per cent to 47,564.
Rural starts were estimated at a seasonally adjusted annual rate of 13,609 units.
” Housing starts continue to rebound nicely,” Bank of Montreal economist Priscilla Thiagamoorthy noted. “Strong underlying demand and low rates mean builders likely won’t be packing away those hammers anytime soon.”
Construction increased in every province except Manitoba. Alberta’s number rose for the first time in three months, but the province is still see construction activity well below the usual level.
Saskatchewan ramped up, bringing home construction to the highest level in the province since October 2014. Ontario climbed 8 per cent following a 36 per cent increase the month earlier.
Quebec held steady while activity increased in Atlantic Canada, especially New Brunswick where construction activity hit the highest level since 1990.