Ontario posts biggest housing starts decline
Ontario housing starts posted the biggest decline in all Canadian provinces as residential construction eased for single detached homes and condominium development.
Approximately 54,500 starts (seasonally adjusted and annualized figures) broke ground last month, down 10.9 per cent from August, according to the Canada Mortgage and Housing Corporation.
“Canadian housing demand has cooled significantly this year, and supply has begun to follow,” said economist Robert Kavcic for BMO Capital Markets to the Toronto Star. “Starts should continue to soften in the next few quarters, pulled down by the cooling we’ve seen on the demand side of the housing market.”
So far this year, Ontario new home construction is ahead by 29 per cent over 2009, though much of it is from the market’s strength earlier this year. Starts, which are counted when the concrete foundations are poured, are a key indicator of future economic activity, as new development generates job growth.