Housing starts in B.C. and Vancouver defied national trends last month amid a slow month of construction across most of Canada, according to a new report from the Canada Housing and Mortgage Corporation (CMHC).
Data out Monday (January 11) reveals B.C. posted an annualized rate of 33,000 housing starts in December, up from 26,000 a month prior.
Housing starts held steady month-to-month in Metro Vancouver, registering at about 21,600 in both November and December.
“Activity continues to strengthen in Vancouver, with 2015 marking the strongest tally for housing starts since 1993,” BMO economist Robert Kavcic said in an investors’ note.
But housing starts were was down nation-wide, dropping from 212,000 in November to 173,000 in December. Quebec was the only other province in which housing starts did not fall.
Most of the declines were attributed to a construction slowdown for multi-unit buildings, falling from 139,000 to 101,000 starts between November and December.
Construction of single-detached units held steady at about 57,700 starts both months.
Despite the month-to-month drop across Canada, the monthly average for all of 2015 came in at 194,000 compared with 188,000 in 2014 and 189,000 in 2013.
“B.C. is the lone market, where market conditions are tight and new home construction remains well below pre-2008/2009 highs. Sharply rising home prices will hopefully encourage more homebuilding in 2016,” TD economist Diana Petramala said in a note to clients.
“Elsewhere, the combination of weak economic conditions and overbuilding over the last few years has led to soft housing market conditions with the majority of markets across Canada are either fairly balanced or tipping into buyer's territory. This should keep a lid on new home construction for the next few years.”
