The seasonally adjusted annualized rate of Canadian housing starts declined by 15% in January to 238,049 units from a revised figure 280,668 units in December, according to data from the Canada Mortgage and Housing Corporation (CMHC).
Actual housing starts were up 1% year-over-year in centers with a population of 10,000 or greater, with 16,088 units recorded in last month, compared to 15,957 units in January 2025. Among Canada’s big three cities, Vancouver recorded a 37% increase in actual starts due to higher multi-unit and single-detached starts. But Toronto reported a 2% drop due to lower single-detached starts while Montreal posted a 44% year-over-year plummet fueled by lower multi-unit and single-detached starts.
“While actual starts in January were flat, the six-month trend has decreased for the fourth consecutive month, which is in line with recent signs of slowing momentum in residential construction,” said Tania Bourassa-Ochoa, CMHC’s deputy chief economist. “We expect new construction to continue trending lower going forward as trade and geopolitical uncertainty, high construction costs, weaker demand, and rising inventories continue to constrain developer activity. As a result, near-term improvements in housing supply are unlikely, reflecting the on-the-ground sentiments we’ve heard from developers over the past several months.”
