Canada: Housing Starts Still High but Cracks are Showing

Canadian housing starts came in at an annualized pace of 267,443 units in August 2022, a 2.8% drop versus July. Construction activity continues to hold up remarkably well in the face of an historic downturn in the Canadian home resale market but starts are showing signs of weakening. We believe that these are but the early innings of a downturn in residential home construction.