TORONTO, ONTARIO--(Marketwired - July 11, 2016) - Housing starts in the Kitchener-Cambridge-Waterloo Census Metropolitan Area (CMA) were trending at 2,846 units in June compared to 2,717 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.
"Total housing starts trended slightly higher in June as the increase in the trend for single-detached and apartment starts more than offset the decreasing trend for townhomes. Starts are trending at a level consistent with demographic demand," said Erica McLerie, Senior Market Analyst at CMHC. "Strong demand for ownership housing due to low interest rates, job growth and in-migration coupled with a very tight resale market meant more households were choosing to purchase a new home."
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 4,433 units in June, up from 3,126 units in May. The increase in the SAAR was due higher starts for apartments. Starts of single-detached homes and townhouses types declined from the previous month. Actual starts for the first half of 2016 were virtually unchanged, declining by only 7 units from the same period in 2015 due to fewer townhouse and apartment starts, but significantly higher single-detached 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/1062100a.pdf