Multi-unit home building still in overdrive

The unexpected decline in housing starts in October, which was driven by a sharp drop in the volatile multi-unit segment, is likely to be reversed in the coming months, reigniting concerns about overbuilding in the large hi-rise condominium market. Indeed, the recent strength in residential building permits indicates that starts will rebound to an annual rate of more than 200,000 units soon. That would put starts well above population requirements again, at a time when the stock of unsold condos coming onto the market is already elevated.