07:44 AM EDT, 10/17/2024 (MT Newswires) -- Canadian housing starts edged up to 224,000 annualized units in September, but activity continues to gradually grind softer, said Bank of Montreal (BMO).

The 12-month average for new starts has turned down again

to sit at 244,000 based on data released Wednesday, noted the bank. Historically, this is hardly a weak level of activity -- in fact, it is quite strong -- but it's a long way from tripling the rate of new supply growth.

Market conditions are making it tough for builders, with

higher borrowing costs and, importantly, the disappearance of

investors that are often leaned on to bring projects to the

construction phase, stated BMO.

The bank pointed out that the 12-month average for multi-unit starts has clearly peaked and has been trending at around 180,000 since the tightening cycle began -- with support

from purpose-built rentals as investor/owner demand has

faded.

All in, there's no upward push in new supply but, considering

the magnitude of this tightening cycle, it's encouraging that

this sector hasn't broken even harder, according to the bank.