New Canadian home construction gains momentum in September: CMHC outlook

October 11, 2011 6:46 AM108 commentsViews: 55

New Canadian home construction gains momentum in September: CMHC outlook

OTTAWA – Canada Mortgage and Housing Corp. said Monday the pace of home construction picked up last month, widely surpassing expectations, on strength in the Atlantic region, Quebec and British Columbia.

Housing starts rose to a seasonally adjusted annual rate of 205,900 units.

Economists on average had expected the rate to come in at about 190,000 units for September.

Starts in urban areas rose by eight per cent to 185,900 units.

Multiple-unit urban starts increased 14.2 per cent to 118,000 units, while urban single starts decreased by 1.5 per cent to 67,900 units.

“Multiple housing starts are expected to move back towards levels consistent with demographic fundamentals in the near term,” said Mathieu Laberge, CMHC’s deputy chief economist.

Rural starts were estimated at a seasonally adjusted annual rate of 20,000 units in September, up from 18,900 units in August.

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