Pace of new home construction slows in July, with Calgary plunging: CMHC

The Canada Mortgage and Housing Corp. said Tuesday that the pace of new home construction slowed in July for the first time in three months, mostly as a result of fewer multi-unit projects started in urban areas — particularly Calgary.

OTTAWA — The Canada Mortgage and Housing Corp. said Tuesday that the pace of new home construction slowed in July for the first time in three months, mostly as a result of fewer multi-unit projects started in urban areas — particularly Calgary.

CMHC says the seasonally adjusted annual rate last month was 193,032 units nationally, down from 202,338 units in June.

Regionally, British Columbia showed an increase from June but there were declines in the other parts of Canada including Calgary and other Prairie cities and the Greater Toronto Area.

The Ottawa-based federal agency had anticipated a slowdown but July’s seasonally adjusted pace — which is a projection of what would happen over a full year, after accounting for typical variations related to the season — was below an estimate of 195,000 units from economists, according to Thomson Reuters.

In Calgary, the seasonally adjusted annual rate plunged to 8,716 units in July from 19,146 the previous month due to a “pronounced decline in multi-family starts,” CMHC said.

Actual housing starts were down 43 per cent, falling to 770 units last month from 1,354 in July 2014. It was a big enough drop to lower Calgary’s six-month trend.

Edmonton’s and Saskatoon’s six-month trend was also down in July, going against the national six-month trend, which rose to 185,586 units last month from 184,035 in June.

CMHC chief economist Bob Dugan said gains in multiple starts have offset declines in single starts over the last three months, largely due to more rental apartments, many of which are seniors’ homes.

In British Columbia, the July seasonally adjusted annual rate for urban areas was 36,501 units, up from 34,870 in June. CMHC says B.C.’s new home construction has been keeping pace with demand, keeping supplies of unsold homes in check.

In Ontario, the rate fell to 49,047 units from 56,824 in June — although there was an increase in parts of the province outside of the Toronto area.

“For a second consecutive month, the trend in Ontario residential construction activity dipped due largely to the apartment sector,” said CMHC regional economist Ted Tsiakopoulos in a statement.

“Low density housing construction, which is a better barometer of the health of the new construction market due to its stability, posted growth, suggesting that economic fundamentals continue to support provincial home starts.”

More information on the strength of Canada’s real estate industry will come Friday, when the Canadian Real Estate Association publishes its July 2015 resale housing statistics.

Just Posted

An anti-lockdown protest went ahead outside a café in central Alberta on Saturday, despite pouring rain and a pre-emptive court injunction. (Photo by The Canadian Press)
RCMP investigating whether credible online threats made against officers

Online images purportedly showing officers attending weekend rally at Mirror in rifle crosshairs

Bowden Institution Black Press file photo
Bowden Institution inmate dies from COVID-19 complications

Bowden death the sixth in Canada’s federal prison system

(Contributed)
FOUND: Police locate Red Deer missing youth

Red Deer RCMP thank the public for their assistance

President Joe Biden delivers remarks about COVID vaccinations in the South Court Auditorium at the White House, Wednesday, May 12, 2021, in Washington. (AP Photo/Evan Vucci)
Biden team moves swiftly to tackle pipeline political peril

Executive order issued to improve cybersecurity

Red Deer Mayor Tara Veer and several members of city council helped kick off the spring Green Deer cleanup campaign on Wednesday. Veer said city workers do their best to keep the city looking good, but need volunteer help to get rid of litter that has blown into bushes onto road sides over the winter. (Photo by LANA MICHELIN/Advocate staff)
Red Deer city councillors launch spring Green Deer campaign

Volunteers are needed to keep the city looking good

Toronto FC forward Jozy Altidore, center, celebrates after scoring a goal against the Columbus Crew with teammates from left, forward Tsubasa Endoh, defender Omar Gonzalez and forward Patrick Mullins during the second half of an MLS soccer match, Wednesday, May 12, 2021, in Orlando, Fla. (AP Photo/John Raoux)
Bradley, Altidore scores in Toronto FC’s 2-0 win over Crew

ORLANDO, Fla (AP) — Michael Bradley had a goal and an assist,… Continue reading

A football with the CFL logo sits on a chair during a press conference in Winnipeg, Friday, November 27, 2015. THE CANADIAN PRESS/John Woods
Former defensive lineman Klassen tackling retirement as he did opposing quarterbacks

Klassen spent seven CFL seasons with Montreal, Calgary and Ottawa

FILE - Contestant Lauren Spencer-Smith on an episode of ABC’s American Idol. (American Idol/ABC photo)
‘American Idol’ contestant exits show amid video controversy

A 16-year-old “American Idol” contestant has dropped out of the singing competition… Continue reading

FILE - Ellen DeGeneres appears during a taping of the “The Ellen DeGeneres Show,” in Burbank, Calif. on May 24, 2016. DeGeneres, who has seen ratings hit after allegations of running a toxic workplace, has decided her upcoming season next year will be the last. It coincides with the end of her contract. (AP Photo/John Locher, File)
Ellen DeGeneres to end long-running TV talk show next year

Viewership dropped by 1.1 million people this season

Ottawa Senators centre Josh Norris, right, celebrates his game-winning overtime goal against the Toronto Maple Leafs with left wing Brady Tkachuk Wednesday May 12, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Norris scored winner, Senators beat Maple Leafs 4-3 in Andersen’s return from injury

Norris scored winner, Senators beat Maple Leafs 4-3 in Andersen’s return from injury

Rafael Nadal, of Spain, holds up the trophy after beating Daniil Medvedev, of Russia, in the final at the Rogers Cup tennis tournament, in Montreal on Sunday, Aug. 11, 2019. THE CANADIAN PRESS/Paul Chiasson
Tennis Canada could move top tournaments to US if Toronto, Montreal plan not approved

Tennis Canada could move top tournaments to US if Toronto, Montreal plan not approved

Philadelphia Flyers' Travis Sanheim (6) and Brian Elliott (37) celebrate with teammates after the Flyers won an NHL hockey game against the New Jersey Devils, Monday, May 10, 2021, in Philadelphia. (AP Photo/Matt Slocum)
Puck luck? Hockey’s secrecy makes betting on NHL a gamble

Puck luck? Hockey’s secrecy makes betting on NHL a gamble

FILE - John Davidson, left, president of the New York Rangers, and Rangers general manager Jeff Gorton pose at a news conference in New York, in this Wednesday, May 22, 2019, file photo. The New York Rangers abruptly fired president John Davidson and general manager Jeff Gorton on Wednesday, May 5, 2021 with three games left in the season. Chris Drury was named president and GM. He previously served as associate GM under Davidson and Gorton. (AP Photo/Seth Wenig, File)
New York Rangers fire coach Dave Quinn, 3 assistants

New York Rangers fire coach Dave Quinn, 3 assistants

Most Read