Canada: Construction of new homes fell 10 percent compared to December

Construction of new homes in Canada fell 10 percent in January compared to December, according to the National Housing Agency, with 223,589 units started last month, down 25,379 from December, while many economists had An increase was expected.

TD Bank economist Mark Arcolao said Canada needs to accelerate the pace of homebuilding to prevent a continued decline in housing affordability.

He said that the prospect of interest rate cuts by the Bank of Canada could boost existing home sales in the coming months, potentially resulting in an increase in new home construction. New home construction also fell last month as the pace of new housing construction slowed in urban areas, falling 11 percent.

According to the Canada Mortgage and Housing Corporation, construction of multiple-unit townhouses fell 14 per cent during that period, although new construction of single-detached townhouses increased slightly by 0.08 per cent.