Canadian Housing Starts Rise, Regional Variations Noted

In September, Canadian housing starts increased by 5% from August, reaching a seasonally adjusted annual rate of 223,808 units, primarily driven by urban multi-unit projects. The growth was notably observed in Alberta, Quebec, and the Atlantic provinces, while Ontario and British Columbia saw significant declines in housing starts. Despite this uptick, the six-month moving average of housing starts declined, indicating a continuing long-term slowdown in construction activity, which is insufficient to address Canada's housing shortage. Industry experts emphasize the need for a more substantial and sustained increase in housing development to counteract the housing crisis, with issues like high construction costs and labor shortages posing ongoing challenges. A surge in housing commencements was recorded as builders aimed to benefit from government incentives, although concerns remain about the completion viability of these projects.