Housing starts up as building permits decline

OTTAWA — Housing starts soared by 26% in June, according to Canada Mortgage and Housing Corp., reaching a seasonally adjusted annual rate of 245,657 units compared to 196,809 in May. The SAAR of urban starts also increased by 26% in June, to 234,238 units. Multiple urban starts rose by 31% to 185,804 units while single-detached urban starts increased by 8% to 48,434 units. Rural starts were estimated at a SAAR of 11,419 units.

Meanwhile, StatCan reported that Canadian municipalities issued $8.2 billion worth of building permits in May, a 13% decline after a record $9.5 billion in April. Increases in six provinces and all three territories were not enough to offset the decrease in B.C., where the value of permits for multi-family dwellings stabilized after a spike in April. Higher development costs taking effect in Metro Vancouver in May drove the April rush.