Housing Starts Plunge 86 %

Housing Starts in the Abbotsford-Mission Metropolitan Area plunged 86 percent in June and performed far worse than other Western Canadian jurisdictions.

Kelowna, and Victoria r posted increases of between 90% and 68% while Vancouver posted a decline of 19*.

In MJune 0f 2013 17 foundations we started in the two cities while this year there were 18. In the ‘All Others’ category, which includes institutional, business and commercial last year the were 118 building projects started while this year that numbered dropped to 1.

Vancouver – 19%
Victoria +68%
Kelowna +90%
Calgary + 164%
Edmonton -14%
Saskatoon + 22%
Regina -41%
Winnipeg +22%

Though Abbotsford lagged behind other major metropolitan areas in BC the growth was higher than the one percent increase nationally.



The National Picture

 Housing starts in Canada were trending at 185,939 units in June compared to 184,019 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)1 of housing starts.

“The trend in housing starts has been stable since March 2014, down from the range of 191,000 to 196,000 seen between September 2013 and February 2014. This is in line with CMHC’s analysis indicating that the new home construction market in Canada is headed for a soft landing in 2014,” said Bob Dugan, CMHC’s Chief Economist. “Builders are expected to continue to manage their building activity to ensure that demand from buyers seeking a new unit is channeled toward unsold units, whether these are under construction or completed.”

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 analyzing only SAAR data can be misleading, as they are largely driven by the multiples segment of the markets which can be quite variable from one month to the next.

The standalone monthly SAAR was 198,185 units in June, a slight increase from 196,993 in June. The SAAR of urban starts increased to 181,979 units. Multiple urban starts decreased to 118,815 units while the single-detached urban starts segment increased to 63,164 units.

In June, the seasonally adjusted annual rate of urban starts increased in Atlantic Canada and the Prairies, and decreased in Quebec, Ontario, and British Columbia.

Rural starts2 were estimated at a seasonally adjusted annual rate of 16,206 units.

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 high 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.

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.

2 CMHC estimates the level of starts in centres with a population of less than 10,000 for each of the three months of the quarter, at the beginning of each quarter. During the last month of the quarter, CMHC conducts the survey in these centres and revises the estimate.

Information on this release:

Karine J Leblanc
CMHC Media Relations

Additional data is available upon request.

Preliminary Housing Start Data
June 2014
May 2014 June 2014
Trend1, all area 184,019 185,939
SAAR, all areas 196,993 198,185
SAAR, rural areas 15,634 16,206
SAAR, urban centres2
Single-detached 62,609 63,164
Multiples 118,750 118,815
Total 181,359 181,979
Atlantic, urban centres2 6,273 6,778
Quebec, urban centres2 37,038 32,119
Ontario, urban centres2 65,046 54,667
Prairies, urban centres2 44,924 61,740
British Columbia, urban centres2 28,078 26,675
Canada June 2013 June 2014
Actual, all areas 18,214  18,212
Actual, rural areas 2,255 1,692
Actual, urban centres2
June – Single-detached 6,329 6,507
June – Multiples 9,630 10,013
June – Total 15,959 16,520
January to June – Single-detached 29,032 27,707
January to June – Multiples 48,470 53,119
January to June – Total 77,502 80,826

Source: CMHC
1 The trend is a six-month moving average of the monthly seasonally adjusted annual rates (SAAR).
2 Urban centres with a population of 10,000 and over.
Detailed data available upon request.


Leave a Reply