Canada’s housing construction activity slowed in June, with the annual pace of housing starts declining compared with the previous month, according to new figures released by the Canada Mortgage and Housing Corporation (CMHC).
The national housing agency reported that the seasonally adjusted annual rate (SAAR) of housing starts fell 6% to 238,971 units in June, down from 253,083 units recorded in May.
CMHC also noted that the six-month moving average of the seasonally adjusted annual rate declined 2.8%, reaching 248,123 units in June. The moving average is used to smooth monthly fluctuations and provide a clearer picture of longer-term construction trends.
Despite the slowdown in new housing starts, construction activity remained relatively strong. The number of housing units under construction in Canadian urban centres with populations of 50,000 or more rose 0.2% from May to 375,469 units.
Housing completions also increased during the month. CMHC reported that 18,298 homes were completed in June, representing an 8.4% increase compared with May.
Meanwhile, the number of housing units that had received building permits but where construction had not yet begun declined slightly. There were 137,324 approved but unstarted units in June, down 1.1% from the previous month.
In rural areas, CMHC estimated the seasonally adjusted annual rate of housing starts at 11,141 units.
The latest figures suggest that while the pace of new residential construction eased in June, builders continue to advance existing projects, with both the number of homes under construction and completed units remaining at healthy levels. The data points to a housing market that is slowing modestly after stronger activity earlier in the year, while maintaining a substantial pipeline of ongoing residential development.
