Canadian housing starts declined 5 per cent on a monthly basis in September to 188,683 units at a seasonally adjusted annual rate (SAAR). The trend in Canadian housing starts continued to moderate lower, averaging 208,000 units SAAR over the past six months.
It was a volatile month for new home construction in BC. Total housing starts fell 43 per cent on a monthly basis to 25,611 units SAAR and were down 31 per cent year-over-year. On a monthly basis, starts of multiple units were down more than half from August to just 16,980 units SAAR while single detached fell 3 per cent to 8,631 units SAAR. Compared to September 2017, multiple units starts were down 37 per cent while single detached starts were 20 per cent lower.
Looking at census metropolitan areas (CMA) in BC:
- Total starts in the Vancouver CMA were down 42 per cent on a monthly basis to 14,390 units SAAR as multiple units starts dropped 50 per cent from August. Compared to this time last year, total starts in Vancouver were 21 per cent lower. September new home construction in Metro Vancouver was concentrated in Surrey which accounted for a quarter of all starts.
- In the Victoria CMA, housing starts fell 56 per cent after a surge of new starts in August. Total housing starts were still on a 3,000 annual pace in September. That is well below the torrid pace of new home construction seen in Victoria over the past year, but still relatively strong.
- In the Kelowna CMA, new home construction slowed substantially in September, falling to just 750 units SAAR from August's near 4,000 unit annual pace. On a year-over-year basis, total starts were down 84 per cent to just 67 total units. Housing starts in Kelowna have fallen off of the record pace of 2017, but remain above the 10-year average for the city.
Housing starts in the Abbotsford-Mission CMA rose 23 per cent on a monthly basis, driven by a 44 per cent increase in multiple unit projects and strong single-detached starts. However, total housing starts were down 80 per cent compared to last September, which saw very strong multiple unit starts.
Copyright British Columbia Real Estate Association. Reprinted with permission.
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