Toronto - Home starts declined in January and were in line with our forecast of slowing residential construction activity in 2009. Ontario preliminary Seasonally Adjusted Annual Rate (SAAR) of urban* home starts moderated registering 51,500 unit starts in January, down from 60,300 units in December. While construction declined for all home types, single detached construction experienced a more pronounced slowdown. Approximately three out of four Ontario urban centers registered declining starts activity in January from the same period one year ago.

The longer term trend for Ontario housing starts has been one of high starts levels gradually edging lower from peak levels in 2003-04.

“A cooler labour market, cautious consumer spending and rising inventories in both existing and new home markets dampened the pace of Ontario residential construction activity,” said Ted Tsiakopoulos, CMHCs Ontario regional economist. “Much of the same can be expected in the months ahead as the housing industry adjusts to a slowing economy,” added Tsiakopoulos.

Ontario total urban SAAR starts, 000s