Canada Mortgage and Housing Corporation



Canada Mortgage and Housing Corporation

October 09, 2012 08:15 ET

September 2012 Housing Starts in Kitchener

TORONTO, ONTARIO--(Marketwire - Oct. 9, 2012) - Housing starts in the Kitchener-Cambridge-Waterloo Census Metropolitan Area (CMA) were trending at 2,280 units in September, 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. The standalone monthly SAAR was 4,500 units in September, up from 1,070 in August.

"Townhouse and apartment construction continue to be the story this year. Price conscious consumers are buying these more affordable homes. Rental apartment construction has added to the numbers. Just under half of apartment construction this year has been rental. Immigrants, students, and downsizing baby boomers have supported demand for townhouses and apartments, said Erica McLerie, CMHC's Senior Market Analyst for Kitchener-Cambridge-Waterloo.

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.

New home construction rebounded in September compared to August. Construction began on 364 homes in September, down from 405 units started in September 2011. Builders started 70 single-detached homes, down from the 80 homes started a year ago. Townhouse starts doubled to 51 units, while apartment starts decreased to 235 units, from 298 units started in September 2011. Due to the strength of townhouse and apartment, housing starts in the first three quarter of 2012 outpaced the starts in the same period of 2011.

Preliminary Housing Starts data is also available in English and French at the following link: Preliminary Housing Starts Tables

As Canada's national housing agency, CMHC draws on more than 65 years of experience to help Canadians access a variety of quality, environmentally sustainable and affordable housing solutions. 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 informed decisions.

(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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Preliminary Housing Start Data
September / 2011-2012
Kitchener-Cambridge-Waterloo, CMA(1) September 2011 September 2012
Actual
Sept - Single-Detached 80 70
Sept - Multiples 325 294
Sept - Total 405 364
Jan to Sept - Single-Detached 930 731
Jan to Sept - Multiples 1,332 1,703
Jan to Sept - Total 2,262 2,434
August 2012 September 2012
SAAR(2)
Total 1,070 4,500

Source: CMHC

(1) Census Metropolitan Area

(2) Seasonally Adjusted at Annual Rates

Detailed data available upon request.

Kitchener-Cambridge-Waterloo Preliminary Actual Housing Start Data by Type
September / 2011-2012
Kitchener-Cambridge-Waterloo, CMA(1) Single Semi Row Apt
Total
2011 2012 2011 2012 2011 2012 2011 2012 2011 2012
Sub-Market
Cambridge City 19 14 0 0 5 24 0 0 24 38
Kitchener City 45 38 4 2 4 27 0 55 49 122
North Dumfries Township 3 1 0 6 10 0 0 0 13 7
Waterloo City 4 7 0 0 6 0 278 180 288 187
Woolwich Township 9 10 2 0 0 0 20 0 31 10
Total KCW CMA Starts 80 70 2 8 25 51 298 235 405 364
Kitchener-Cambridge-Waterloo Preliminary Actual Housing Start Data by Type
Year-to-Date / 2011-2012
Kitchener-Cambridge-Waterloo, CMA(1) Single Semi Row Apt
Total
2011 2012 2011 2012 2011 2012 2011 2012 2011 2012
Sub-Market
Cambridge City 215 134 2 0 48 102 126 3 391 239
Kitchener City 447 374 14 8 118 186 346 381 925 949
North Dumfries Township 37 35 2 20 14 25 0 0 53 80
Waterloo City 65 85 0 2 33 33 601 941 699 1061
Woolwich Township 166 103 4 0 4 0 20 2 194 105
Total KCW CMA Starts 930 731 22 30 217 346 1,093 1,327 2,262 2,434

(1) Census Metropolitan Area

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