August 2015 Housing Starts in Ottawa

OTTAWA, ONTARIO--(Marketwired - Sept. 9, 2015) - Housing starts in the Ottawa Census Metropolitan Area (CMA) were trending at 4,943 units in August compared to 4,501 units in July 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.

"Housing starts trended up in August compared to the previous month, driven by increases in single-detached and row starts. However, multiple starts have trended down this year, while single-detached starts have trended up. The greater demand for new single-detached homes is likely the result of strengthening full-time employment since the beginning of the year. Relatively high levels of unabsorbed condominium apartments have allowed builders to respond to the increased demand by launching more single-detached projects," said Jean-Sébastien Michel, CMHC's Principal Market Analyst for Ottawa.

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 multiples segment includes apartments, rows and semi-detached homes.

In Ottawa, the monthly SAAR measure was 5,055 in August up from 4,590 in July, as the increase in single-detached and row starts more than offset the decrease in apartment starts.

This month, Nepean outside the greenbelt (OTG) took the lead with 20 per cent of total starts activity. Kanata and Gloucester (OTG) each claimed 18 per cent of total starts. Cumberland captured the highest share of single-detached starts with 25 per cent, followed by Goulbourn with 20 per cent.

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

As Canada's authority on housing, CMHC contributes to the stability of the housing market and financial system, provides support for Canadians in housing need, and offers objective housing research and information to Canadian governments, consumers and the housing industry.

Follow CMHC on Twitter @CMHC_ca

Additional data is available upon request.

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⁽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.

Tables and a graph are available at the following address: http://media3.marketwire.com/docs/150909_OTTAWA.pdf