Growth largely confined to volatile multiple-unit segment
The seasonally adjusted annual rate of housing starts was 229,700 units in May, up from 211,900 units in April, according to Canada Mortgage and Housing Corp. (CMHC).
“Although housing starts moved higher in May, much of the increase came from the volatile multiple segment which registered a significant increase in Ontario,” said Bob Dugan, chief economist at CMHC’s Market Analysis Centre, in a releae. “Even with the strong performance in May, the single detached component, which is usually a strong trend indicator, increased only slightly compared to its April level. Rising mortgage carrying costs are expected to result in lower housing starts in 2007 compared to last year.”
The seasonally adjusted annual rate of urban starts increased 9.9% to 196,800 in May compared to April. Urban multiples were up 16.3% to 110,100 units in May, while single starts rose 2.8% to 86,700 units.
In May, seasonally adjusted urban starts went up in all regions except in the Prairies, where they edged down by 0.2%. Urban starts registered an increase of 21.9% in Ontario, 12.7% in the Atlantic, 10.5% in British Columbia, and 4.5% in Quebec. Urban single starts were either up or unchanged in all regions. Urban multiple starts edged down in the Prairies, but were up in other regions. The largest increase in urban multiple starts was in Ontario.
Rural starts were estimated at a seasonally adjusted annual rate of 32,900 units in May.
Actual starts, in rural and urban areas combined, were down an estimated 3.8% in the first five months of 2007 compared to the same period in 2006. Actual starts in urban areas alone were down an estimated 5.8%. Actual single starts in urban areas were 11.7% lower than they were a year earlier, while actual urban multiple starts edged down 0.3%.
Housing starts move higher in May, CMHC reports
Growth largely confined to volatile multiple-unit segment
- By: IE Staff
- June 8, 2007 June 8, 2007
- 08:55