Canada: Housing starts expected to rise slightly to 195,000 in November – BMO CM

Robert Kavcic, Senior Economist at BMO Capital Markets, notes that the Canadian housing starts have been oscillating around the 200,000 annualized mark this year, and are expected to rise slightly to 195,000 in November.

Key Quotes

“While quite stable at the national level, there are two big stories below the surface. First, regions hard hit by the energy-sector downturn are seeing activity well off recent highs (roughly 40% in Alberta’s case, though stabilizing more recently), while British Columbia and Ontario have strengthened this year. The second major trend remains the lack of new detached-home construction in the Vancouver and Toronto markets, where demand has been robust—this is a structural issue that isn’t going to change any time soon.”