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Construction of new homes in Canada hits highest level in nearly a decade

WATCH ABOVE: Housing starts across the country are on the rise and luxury listings are also seeing movement. As Jill Croteau reports, industry analysts say the multimillion-dollar buyers are out there. – Apr 10, 2017

The annual pace of housing starts increased more than expected in March and hit their highest level since September 2007.

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The Canada Mortgage and Housing Corp. says the seasonally adjusted annual rate of housing starts for March came in at 253,720 units, up from 214,253 in February.

READ MORE: CMHC mortgage insurance premiums: Here’s how much costs rose across Canada as of today

Economists had expected a reading of 215,000 for last month, according to Thomson Reuters.

The overall increase came as the annual pace of urban starts increased by 20.2 per cent to 235,674 units, boosted by an increase in multi-unit starts.

Multi-unit urban starts increased by 30.2 per cent to 160,989, while single-detached urban starts increased by 3.1 per cent to 74,685 units. Rural starts were estimated at a seasonally adjusted annual rate of 18,046.

READ MORE: CMHC to issue first-ever ‘red’ warning for Canadian housing market: What that means for you

CMHC’s trend measure, a six-month moving average of the monthly seasonally adjusted annual rate, increased to 211,342 units in March compared with 205,521 in February.

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