Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

December 08, 2015 08:15 ET

November 2015 Housing Starts in Kitchener-Cambridge-Waterloo

TORONTO, ONTARIO--(Marketwired - Dec. 8, 2015) - Housing starts in the Kitchener-Cambridge-Waterloo Census Metropolitan Area (CMA) were trending lower at 3,378 units in November compared to 3,497 units in October, 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 slightly lower due to lower single-detached and apartment starts. Townhouse starts continued to trend up and were at the highest level in more than three years. Townhouses are a more affordable option compared to single-detached homes. A tight resale market has meant more spill-over of demand to the new home ownership market, boosting demand for townhouses," said Erica McLerie, Senior Market Analyst at CMHC. "Townhouses are higher-density housing which support the goal of more homes per hectare set out in the Region of Waterloo Official Plan."

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 3,414 units in November, up from 2,445 units in October. The increase in the SAAR was due to more townhouse and apartment starts. For the first eleven months of 2015, actual starts have declined by 28 per cent from the same time last year, due to fewer apartment starts. Starts for single-detached and townhouses are higher.

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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To view the graph and tables associated with this release, please visit the following link: http://media3.marketwire.com/docs/1035916E.pdf

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