Housing starts recorded a sixth consecutive monthly decline in February, dragging construction of new homes to its lowest level in years.
Starts fell to a seasonally adjusted annual rate of 134,600 units in February, down 12 per cent from 153,500 units in January, because of the reduced sales and increased listings of existing homes, Canada Mortgage and Housing Corp. said yesterday.
The Bank of Montreal said the drop was 30 per cent on a year-to-year basis. On the same basis, home construction in the U.S. is down 48 per cent.
“The Canadian housing correction is in full swing, with starts now well below the rate of household formation, offsetting the overbuilding of the past five years,” the bank said.
The bank said multiple starts such as condo buildings were the lowest since 2002, while single-family starts were at their lowest since 1996.