In January 2024, Canada’s housing market experienced notable shifts, as revealed in the latest report from the Canada Mortgage and Housing Corporation (CMHC). This comprehensive analysis highlights the changing dynamics of housing starts across the nation, emphasizing the trends in urban and rural areas and the variances among major cities like Toronto, Vancouver, and Montreal.

1. Overall Decrease in Housing Starts: There was a 10% reduction in the total Seasonally Adjusted Annual Rate (SAAR) of housing starts across Canada, falling from 248,968 units in December 2023 to 223,589 units in January 2024.
2. Six-Month Trend Indicates a Slight Decline: Observing the six-month trend, a minor dip of 2% was noted. The SAAR of total housing starts moved from 249,757 units in December 2023 to 244,827 units in January 2024.
3. Rise in Actual Housing Starts in Major Centres: Despite the overall decrease, actual housing starts in Canadian centres with populations over 10,000 witnessed a 13% increase year-over-year. This amounted to 14,878 units in January 2024, compared to 13,220 units in the same month of the previous year, primarily driven by an upsurge in multi-unit starts.
4. Divergent Trends in Major Cities: Toronto observed a remarkable 49% year-over-year increase in actual housing starts, primarily in multi-unit projects. In contrast, Vancouver and Montreal experienced decreases of 44% and 6%, respectively, indicating varied regional housing market dynamics.
5. Urban Housing Starts Overview:
   • The SAAR of total urban housing starts (in centres with populations over 10,000) decreased by 11%, registering 208,119 units.
   • Multi-unit urban starts saw a 14% decrease, totaling 164,789 units.
   • Single-detached urban starts showed a marginal increase of 0.08%, reaching 43,330 units.
6. Rural Housing Starts: The rural starts monthly SAAR estimate stood at 15,470 units.
7. Regional Variations:
   • Toronto’s total SAAR housing starts surged by 179%, predominantly due to a rise in multi-unit starts.
   • Montreal and Vancouver reported declines in their total SAAR housing starts by 28% and 55%, respectively, with significant drops in multi-unit starts.

This detailed analysis provides valuable insights into Canada’s housing market as of January 2024, illustrating the complexities and regional variations that characterize the sector. Investors, developers, and policymakers can leverage this data to make informed decisions and strategies for the future. Stay tuned for more updates and in-depth analyses of the Canadian housing market trends.

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