January 22, 2021, by Sean MacKay
As the pandemic sent home buyers flocking to suburban areas across Canada, home builders responded by boosting the construction of detached homes.
According to a new analysis from BMO Economist Priscilla Thiagamoorthy, this detached home building surge sent the average number of housing starts recorded in 2020 to a three-year high at the national level.
Although Canadian home construction slowed down in December, measuring 228,279 annualized units in the final month of the year, the six-month moving average for housing starts continued riding high. From June to December, housing starts averaged 239,052 annualized units, a 13-year high, according to Thiagamoorthy.
“In spite of the pandemic-related plunge in the spring, housing has turned out to be one of the strongest sectors in 2020,” she wrote.
However, there’s reason to believe that the momentum that accelerated home construction activity in 2020 will wane in 2021.
What does this mean?
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