Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

July 11, 2016 08:15 ET

June 2016 Housing Starts in Guelph

TORONTO, ONTARIO--(Marketwired - July 11, 2016) - Housing starts in the Guelph Census Metropolitan Area (CMA) were trending higher at 1,471 units in June compared to 1,234 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) of housing starts.

"The increase in total housing starts trend in June was due to an increase in apartment starts which offset the decreasing trend for single-detached homes and townhouses. Three consecutive months of higher apartment starts pulled up the trend, while a limited supply of registered lots for ground-oriented housing has meant a lower trend for starts of these housing types," said Erica McLerie, Senior Market Analyst at CMHC. "Demand is strong for apartments, both condominium and rental. Developers are responding to the low vacancy rate in Guelph with new supply."

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 2,101 units in June, down from 2,725 units in May due to a lower number of apartment starts. Although apartment starts were down, they remained at a relatively high level. Single-detached starts were at the lowest level in 18 months. Actual starts for the first half of 2016 increased 86 per cent from the same period in 2015 due to more apartment starts.

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, YouTube, LinkedIn and Facebook.

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/96a.pdf

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