Canadian housing starts data for the month of September is scheduled to release tomorrow. According to a TD Economics research report, housing starts is expected to have risen to a 230k pace in September on a rebound in multi-family construction.
Multi-unit starts have dropped 13 percent in the past two months and, while a recovery is not expected to June’s record pace, tighter conditions in the resale market along with lower financing rates underpin a pickup in September. Meanwhile, single family starts are likely to have given back a portion of last month’s 13 percent rise.
“While stronger resales of detached homes should help support construction in this segment of the market, the 40 percent rebound from February lows greatly exceeds a 10 percent increase in permit issuance since December, suggesting a high bar for further gains”, added TD Economics.
