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.
â€œIn spite of the pandemic-related plunge in the spring, housing has turned out to be one of the strongest sectors in 2020,â€ she wrote.
However, thereâ€™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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