Canada Mortgage and Housing Corporation

Canada Mortgage and Housing Corporation

July 09, 2010 08:15 ET

Ontario Home Starts Decline in June

TORONTO, ONTARIO--(Marketwire - July 9, 2010) - Ontario preliminary Seasonally Adjusted Annual Rate (SAAR) of home starts across urban* centres moved lower in June. An estimated 52,600 residential housing units broke ground, down from a revised 63,700 units in May. Multi family home construction, which includes semi detached, row and apartment dwellings, was responsible for most of the decline in construction activity. Single detached home construction remained remarkably resilient although was still down from its near term April high.

For the year, Ontario new home construction in urban areas is running 34 per cent above levels for the same period one year ago. After trending lower since the 2003-04 period, residential construction activity has turned the corner and has helped lead the economic recovery across Ontario.

"The construction of single detached housing led the recovery in housing starts beginning in the second quarter of last year," said Ted Tsiakopoulos, CMHC`s regional economist. "While detached housing construction remained resilient in June, the sector has started to cool in the second quarter largely due to rising mortgage carrying costs. The multi-family home sector looks relatively stronger moving forward due to a high backlog of condo apartment sales that have yet to commence construction and more sites available for apartment construction," added Tsiakopoulos.

To view the graph associated with this release, please visit the following link:

http://media3.marketwire.com/docs/ont.urban.pdf.

As Canada's national housing agency, CMHC draws on more than 60 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable homes. CMHC also provides reliable, impartial and up-to-date housing market reports, analysis and knowledge to support and assist consumers and the housing industry in making vital decisions.

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 Ontario Starts, Urban 10,000 and Over - 2010 SAAR
  April May June %Change
Total 65,600 63,700 52,600 -17.4%
Single 29,800 24,300 25,600 5.3%
Multiple 35,800 39,400 27,000 -31.5%
 
 Ontario Starts, Urban 10,000 and Over, Actual, June and Year 2010
  June Year-to-Date
  2009 2010 % Change 2009 2010 % Change
Total 4,440 4,956 11.6% 20,162 27,050 34.2%
Single 1,897 2,625 38.4% 7,135 12,570 76.2%
Multiple 2,543 2,331 -8.3% 13,027 14,480 11.2%
Starts figures in this release, other than actual starts, are seasonally adjusted annual rates (SAAR)—that is, monthly figures
adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels
 
* refers to provincial starts in areas with population 10,000+ (urban)

Contact Information

  • Canada Mortgage and Housing Corporation
    Ontario:
    Ted Tsiakopoulos
    (416) 218-3407
    ttsiakop@cmhc.ca
    or
    Canada Mortgage and Housing Corporation
    Canada:
    Charles Sauriol
    (613) 748-2799
    csauriol@cmhc.ca