June 2015 Housing Starts in Kitchener-Cambridge-Waterloo

TORONTO, ONTARIO--(Marketwired - July 9, 2015) - Housing starts in the Kitchener-Cambridge-Waterloo Census Metropolitan Area (CMA) were trending down at 2,865 units in June compared to 3,206 units in May, 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.

"Total housing starts trended down due to fewer apartment starts. Apartment starts in the past few years have been boosted by the growth in construction of units geared to students. Apartment starts are adjusting to meet current demand. The trends for other housing types increased. Housing demand due to population and employment growth has added to the tightness in the resale market and has meant more spill-over demand to the new home ownership market," said Erica McLerie, Senior Market Analyst at CMHC.

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.

The SAAR of total housing starts was 2,680 units in June, down from 4,125 units in May. The large decline in the SAAR was due to fewer apartment starts. For the first half of 2015, actual starts declined by 16 per cent from the same time last year due to a slowing of townhouse and apartment construction.

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

⁽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.

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/1016368e.pdf