CMHC Reports Decline in Housing Starts for May 2023

📅 6 days ago

The Canada Mortgage and Housing Corporation has reported a decline in housing starts for May 2023 compared to the previous month, with a decrease in approved building permits.

OTTAWA — The Canada Mortgage and Housing Corporation (CMHC) has announced a notable decline in the annual pace of housing starts for May, indicating a six percent decrease from the figures recorded in April. The seasonally adjusted annual rate of housing starts was reported at 261,377 units for May, a drop from the 278,380 units in April. Despite this decrease, the six-month moving average for May saw a slight increase of 0.5 percent, reaching 258,010 units compared to 256,646 in April.
In addition, CMHC highlighted that the number of units currently under construction in urban centers with populations exceeding 50,000 rose by 0.9 percent month-over-month, totaling 374,662 units in May. This increase in construction activity is accompanied by a significant rise in completions, which surged by 10.6 percent compared to April, resulting in 16,880 units being completed during the month.
On the other hand, the number of units that have received approved building permits but have yet to commence construction experienced a decline of 2.4 percent, falling to 138,842 units in May. This trend may indicate a slowdown in future construction activity, reflecting potential challenges in the housing market.
Furthermore, the seasonally adjusted annual rate of rural housing starts was estimated at 14,357 units for May, contributing to the overall housing landscape in Canada. These figures provide valuable insights into the current state of the housing market and the ongoing trends affecting construction activity across the country.

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