Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

June 08, 2016 08:15 ET

Calgary Housing Starts Decline in May

CALGARY, ALBERTA--(Marketwired - June 8, 2016) - Housing starts in the Calgary Census Metropolitan Area (CMA) were trending at 7,726 units in May compared to 9,133 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) of total housing starts.

"Total housing starts trended lower in May as the pace of multi-family construction declined from the previous month," said Lai Sing Louie, CMHC Regional Economist. "The economic slowdown in Calgary created by low energy prices has impacted employment and reduced housing demand. New home inventories are trending higher and builders are responding by reducing new home construction."

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, analyzing 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 standalone monthly SAAR was 7,705 units in May, down from 9,856 in April. Actual housing starts in May totalled 648 units, a 39 per cent decrease from 1,058 in the same month in 2015. To the end of May, there were 3,030 total housing starts compared to 5,012 during the corresponding period in 2015.

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.

For more information, visit our website at www.cmhc.ca or follow us on Twitter, LinkedIn, Facebook, and YouTube.

Additional data is available upon request

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Tables and a graph are available at the following address: http://media3.marketwire.com/docs/1058107a.pdf

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