The Canadian housing market faced challenges in May 2023, witnessing a significant 23% decline in housing starts. This blog breaks down the key findings, providing a simple look at the overall state of the Canadian housing market and specific trends in different regions.
Key Findings:
- National Housing Starts:
- Declined by 23%, reaching a seasonally adjusted annual rate (SAAR) of 202,494 units.
- Reflects a 28% decrease compared to the same month last year.
- Single-Detached Housing:
- While other housing types declined, single-detached housing starts rose by 3% to 55,967 units (SAAR).
- Indicates sustained appeal for single-family homes.
- British Columbia Housing Starts:
- Recorded a significant 33% decrease in May, reaching a SAAR of 40,536 units.
- Areas with 10,000 or more residents saw varying trends.
- Single-Detached Housing in British Columbia:
- Areas with 10,000 or more residents experienced a 7% month-over-month increase, reaching 6,207 units.
- Suggests continued demand for single-family homes in certain parts of the province.
- Multi-Family Housing in British Columbia:
- Saw a decline of 39% in areas with 10,000 or more residents, totaling 32,010 units.
- Indicates reduced interest in multi-family housing options in these regions.
- Regional Variations in British Columbia:
- Vancouver witnessed a significant decrease, while Victoria saw a slight increase, Kelowna had a rise, and Abbotsford recorded substantial growth.
- Year-over-Year Comparison:
- May 2023 housing starts in British Columbia were 3% lower than in May 2022.
- Suggests a slight decrease in housing market activity compared to the previous year.
- 6-Month Moving Average Trend:
- Showed a 2.6% decline in November, with a figure of 49.9k units.
- Provides a broader perspective on the region’s housing starts over 6 months.
Please contact Jared Gibbons, your local realtor, should you have any questions.