May 2014 Housing Starts in Ontario

Real Estate — June 9, 2014

TORONTO, ONTARIO–(Marketwired – June 9, 2014) – Housing starts in the Ontario region were trending at 55,583 units in May, compared to 54,500 units in April, according to Canada Mortgage and Housing Corporation (CMHC). The trend is a six month moving average of the monthly seasonally adjusted annual rates (SAAR)1 of housing starts.

“While total residential construction activity remained stable in May, low density starts, which includes single detached, semi detached and row construction reached their highest levels in over a year. Low resale and new home inventories for low density housing, continued low interest rates and improving income growth remain supportive of low density construction across the province,” said Ted Tsiakopoulos, CMHC’s Ontario Regional Economist.

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 more 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 SAAR of total housing starts was 63,904 units in May, in line with 63,910 units in April. While provincial starts remained stable, over half of Ontario urban centers posted increases in May. For the year ending May, Ontario raw urban starts were four per cent above levels for the same period one year ago.

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

As Canada’s national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making informed decisions.

Follow CMHC on Twitter @CMHC_ca

1 All starts figures in this release, other than actual starts and the trend estimate, are seasonally adjusted annual rates (SAAR) – that is, monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels. By removing seasonal ups and downs, seasonal adjustment allows for a comparison from one season to the next and from one month to the next. Reporting monthly figures at annual rates indicates the annual level of starts that would be obtained if the monthly pace was maintained for 12 months. This facilitates comparison of the current pace of activity to annual forecasts as well as to historical annual levels.

Additional data is available upon request.

A tables and a graph are available at the following address: http://media3.marketwire.com/docs/950782a.pdf

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