The Canada Mortgage and Housing Corporation (CMHC) has reported a notable increase in housing starts across Canadian centres in July 2023. The unadjusted annualized rate of housing starts in places with at least 10,000 residents peaked at 273,618 units. This marks a five percent jump from June’s count of 261,171 units. This milestone of thousand marks the positive trend housing isn’t drastically improving because of high demand.
At the end of July, housing starts had jumped up to an annualized adjusted rate of 294,085 units. That’s a huge leap from June’s figure of 283,523 units. This steady growth in construction activities indicates a positive shift in the housing sector, likely influenced by various economic factors and increasing population demands in urban areas.
That’s not all the report found, though. This urban era figure underscores how metropolitan areas are thriving. Simultaneously, rural areas are growing as well, albeit at a more modest pace. Indeed, rural housing development has never been more in the spotlight. This change could be keeping pace with demographics, as more Canadians seek out residences beyond congested city cores.
A closer look reveals that the six-month moving average of housing starts has gone up. Seasonally adjusted for all areas, in July it was 263,088 units. This figure marks a 3.7 percent increase from June’s average, showing that the housing market is on a long-term upward trend. These trends can be harbingers of a new recovery phase in uncertain and volatile economic times.
CMHC’s latest numbers continue to make the case for tracking housing starts as a leading indicator of market health. Innovative municipalities are rising to the challenge to satisfy the growing need for housing. This presents compelling investment and development opportunities both within the construction and real estate industries.
