According to the latest Preliminary Housing Starts data from the Canada Mortgage and Housing Corporation (CMHC), the total number of Ontario housing starts declined from September to October 2014. Housing starts in the area went from 58,412 units in September to a trending 56,000 units in October.

Year-over-year, the seasonally adjusted annual rates (SAAR) of urban housing starts also revealed declines. Based on the CMHC’s data, Ontario urban starts in October were five per cent lower than those for the same period last year.

“Residential construction activity eased in October largely due to declining activity in the high-rise construction sector,” says Ted Tsiakopoulos, CMHC’s Ontario Regional Economist. “Low rise starts remained stable. The trend in condominium construction activity continues to slow as builders channel demand towards existing inventories and as the backlog of apartment sales that have yet to break ground eases. Nevertheless, improving labour market conditions, tighter resale markets and low interest rates will support Ontario home starts over the next year.”

Trends are based on a six-month average of the monthly SAAR of housing starts.