Canadian housing starts likely slowed down in April

Canadian housing starts are likely to have slowed down in April. According to a TD Economics research report, housing starts are expected to have decelerated to a 210k pace in the month, consistent with the six-month trend. The pick to 253kin March showed an unsustainable jump in multi-unit construction that is likely to correct fully. Single unit starts is expected to see a more modest fall; however, it is likely to add to the overall deceleration in residential construction.

Single unit construction has registered a fresh 3-year high in 3 of the last 4 months, and has decoupled from the trend in building permit issuance, stated TD Economics. New regulatory measures in the Toronto area, mostly notably rent control and the foreign buyer’s tax are not expected to influence this month’s report given the long lead time for new projects. However, it will act as a modest challenge in the medium-term because of the dampening impact on demand from investors, added TD Economics.