The six-month trend in housing starts increased (3.6%) in June (253,081 units), according to Canada Mortgage and Housing Corporation (CMHC).
The trend measure is a six-month moving average of the seasonally adjusted annual rate (SAAR) of total housing starts for all areas in Canada, it said.
Actual housing starts were up 14% year-over-year in centres with a population of 10,000 or greater, with 23,282 units recorded in June, compared to 20,509 units in June 2024. The year-to-date total was 114,411, up 4% from the same period in 2024, said the federal agency, noting as well that the total monthly SAAR of housing starts for all areas in Canada was flat (0.4%) in June (283,734 units) compared to May (282,705 units).
Kevin Hughes
“Through the first six months of the year, national housing starts have increased marginally compared to 2024, however, new home construction varies significantly across Canada. Québec and the Prairie provinces have accelerated the pace of construction for single-detached homes and purpose-built rentals. By contrast, weak condo market conditions in Toronto and Vancouver have contributed to declines in overall housing starts in these regions,” said Kevin Hughes, CMHC’s Deputy Chief Economist.
Key Facts:
- The monthly SAAR for Canada’s centres with a population of 10,000 or greater was flat in June (261,705 units) compared to May (260,947 units).
- The rural starts monthly SAAR estimate was 22,029 units.
- Among Canada’s big three cities, Vancouver recorded a 74% increase in starts this month, driven by higher multi-unit starts. Montreal posted an 8% year-over-year decrease in actual housing starts compared to June 2024, driven by fewer multi-unit starts. A decrease in multi-unit starts drove the 40% year-over-year decrease in Toronto’s housing starts compared to June 2024.
Marc Ercolao
Marc Ercolao, Economist, TD Economics, said June’s housing starts surpassed expectations, helping second quarter starts growth notch a record gain.
“This should provide a near-term tailwind for residential investment, buffering weakness in other areas of the Canadian economy that have been put under stress in the past few months,” he said.
“Near-term homebuilding can likely maintain solid levels given elevated building permits, but we’d expect some of this momentum to cool. Oversupply in key markets combined with slower population growth is weighing on rents, while high construction costs and near-term economic uncertainty may weigh on sales activity.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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