Trade risks add ‘uncertainty’ even as Canada’s housing starts rise: CMHC

Canada Mortgage and Housing Corp. says the annual pace of housing starts in January rose three per cent compared with December, helped by strength in multi-unit starts in Quebec and B.C.

The national housing agency says the seasonally adjusted annual rate of housing starts was 239,739 units in January, up from 232,492 in December.

The increase came as the annual pace of urban starts also rose three per cent to 220,643 in January compared with 215,052 in December. The annual pace of multi-unit urban starts, such as apartments, condominiums and townhouses, rose eight per cent, driven by more purpose-built rentals concentrated in Quebec and B.C.

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The annual pace of rural starts were estimated at 19,096 units.

CMHC deputy chief economist Tania Bourassa-Ochoa says while housing start data shows early signs of progress to begin the year, “foreign trade risks add significant uncertainty for housing construction going forward.”

CMHC says the six-month moving average of the seasonally adjusted annual rate of housing starts was down 2.5 per cent at 236,892 units in January.