Canada Housing Starts in 2024
January 2024 has seen housing starts decrease to 223,589 total units which is down 10.19% from 248,968 total units in December 2023 based on total SAAR (Seasonally Adjusted at Annual Rate) housing starts. This decrease in housing starts reduces the future supply of homes in the real estate housing market for Canada.
Actual Housing Starts in January 2024 by Province
Housing starts in January 2024 totaled 14,878 for centers with a population of 10,000 or more. When compared to the December 2023 housing starts of 13,220, the January 2024 housing starts represent a 12.54% increase in housing starts. Breaking this data down by province, we can see that the majority of these housing starts were in Ontario with 5,818 housing starts in January 2024 representing a 21.97% increase in housing starts over the 4,770 in December 2023. These 5,818 housing starts represent 39.10% of the total 14,878 housing starts in January 2024.
Housing starts in Major Cities
Showing the housing starts in each major city helps us understand the supply that will be introduced into these areas. It also shows us which kind of units are being built – which is broken down by either single-detached or other which includes semi-detached, row, and apartment or other. The major cities that are analyzed include Calgary, Edmonton, Vancouver, Ottawa-Gatineau, Montreal, and Toronto.
Here are some of the key highlights for the major cities:
- Toronto had the most housing starts in January 2024 with a total of 4,005 units followed by 1,951 in Calgary and 1,463 in Vancouver.
- Ottawa-Gatineau had a 297.03% increase in January 2024 housing starts compared to the prior year.
- The annual SAAR of housing starts for Toronto increased from 17,580 in December 2023 to 48,986 in January 2024.
Calgary
Calgary had total housing starts of 1,951 units in January 2024 which is an increase of 51% over the 1,295 housing starts in January 2023. Of these 1,951 units built in January – 487 were single-detached housing starts. The total amount of housing starts for Calary in 2024 is 25,144 at the seasonally adjusted annual rate. This is a 38.53% increase over the 18,151 total units based on the December 2023 SAAR.
Edmonton
Edmonton had total housing starts of 683 units in January 2024. This is an increase of 20.25% over the 568 housing starts Edmonton had in January 2023. The majority of this increase came from the housing starts in single-detached units which increased from 169 in January 2023 to 242 in January 2024. The annual SAAR of starts for Edmonton for January 2024 is 10,220 units which is a 53.25% decrease from the 21,862 units in December 2023.
Vancouver
Vancouver had total housing starts of 1,463 in January 2024 which represents a 43.97% decrease from the 2,611 housing starts in January 2023. Of these 1,463 housing starts in January 2024, only 121 units are for single-detached homes. Vancouver saw a 54.95% decrease in their seasonally adjusted annual rate of 40,614 units in December 2023 to 18,296 units in January 2024.
Ottawa-Gatineau
Ottawa-Gatineau had a total of 401 housing starts in January 2024. These 401 housing starts represent a 297.03% increase over the 101 housing starts the year prior in January 2023. The majority of these January 2024 housing starts are in “other” dwelling types with only 93 of these units being single-detached homes. Ottawa-Gatineau saw its total SAAR units decrease from 10,262 in December 2023 to 5,892 in January 2024.
Montreal
Montreal saw total housing starts of 1,197 in January 2024. Montreal saw a small 6.19% decrease in their housing starts in January 2024 from their 1,276 housing starts in January 2023. Overall, the majority of their housing starts in January 2024 come from “other” with only 63 housing starts being attributed to single-detached homes. Total SAAR units decreased by 28.41% in January 2024 down from 21,188 in December 2023.
Toronto
Toronto had the most housing starts of any major city with 4,005 starts in January 2024. This increase represents a 48.61% increase over the 2,695 housing starts in January 2023. Most of the January 2024 housing starts were for “other” dwelling types – as only 281 of the 4,005 starts were for single-detached homes. Toronto also saw the largest increase in their seasonally adjusted annual rate which increased from 17,580 units in December 2023 to 48,986 units in January 2024.
What is the Seasonally Adjusted Annual Rate (SAAR)?
The SAAR is used to show an annual total if all of the future months were at the same level of performance compared to past seasonal patterns. This helps to present an accurate representation of the data considering the variations based on the time of year.
Why are Housing Starts so Important in Canada?
Canada housing starts reflect the residential projects being started to help meet the housing demand across the country. Housing starts are a great indicator of the new homes that will be entering the Canadian market to satisfy demand. These housing starts can be categorized by the type of unit being completed to get a better understanding of the residential projects started. The Canada Mortgage and Housing Corporation (CMHC) breaks down the housing starts into single-detached, semi-detached, row, and apartment to better reflect the projects started.
source: CMHC