Canadian Housing Starts Unexpectedly Jump to Most Since 2017
(Bloomberg) -- Canadian housing starts hit a two-year high on increases in multi-family dwellings in cities such as Toronto and Vancouver.
Builders started work on an annualized 245,604 units in July, up 16% from 212,095 a month earlier, Canada Mortgage and Housing Corp. said Tuesday in Ottawa. That’s the most since November 2017, and significantly higher than the 205,000 median forecast in a Bloomberg survey of economists.
It’s the second strong month of gains for starts, and brings the trend in-line with long-run averages, CMHC Chief Economist Bob Dugan said in a statement. However he cautioned that starts should move “lower in the near-term” as a result of Covid-19’s effect on the economy.
Construction of multiple-unit buildings including apartment buildings and condos drove the increase, with a gain of 17% in July. Single-family starts rose 11%.
Starts in Ontario were up 8.5% and in B.C., 11%.
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