- Housing starts above consensus at 221,000 annualized units in September
- Six-month trend close to a cycle high
- Trend in multi-unit starts at a record level
Canada’s housing sector is back on the front foot with resales picking up as the year progresses and homebuilding activity clearly displaying some momentum. The latest permit data (247,000 in August) points to further strength ahead. After slowing throughout 2018 and early this year, the six-month trend in housing starts has reversed course, picking up to a near-cycle-high 223,500 annualized units. Ontario, the Prairies and Atlantic Canada are on the rebound while the trend in BC and Quebec remains strong despite slower starts in the last month or two. Across Canada, multi-unit starts remain the key driver of activity. As we wrote in a recent report, Vancouver and Montreal are well on their way to filling rental market deficits (which have put upward pressure on rents) while Toronto has its work cut out.
