The six-month trend in housing starts was flat (0.8%) in May (243,407 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, said the federal agency on Monday.
The total monthly SAAR of housing starts for all areas in Canada was also flat (-0.2%) in May (279,510 units) compared to April (280,181 units), it said.
Actual housing starts were up 9% year-over-year in centres with a population of 10,000 or greater, with 23,745 units recorded in May, compared to 21,814 units in May 2024. The year-to-date total was 90,767 up 1% from the same period in 2024.
“Growth in actual starts activity in May was once again driven by increases of single-detached homes and purpose-built rentals in Québec and the Prairie provinces. By contrast, weak condominium market conditions in Toronto and Vancouver have contributed to significant declines in overall housing starts in these regions, in line with our recent analysis on these markets,” said Tania Bourassa-Ochoa, CMHC’s Deputy Chief Economist.
Tania Bourassa-Ochoa
Key Facts:
- New housing starts revisions data: In Q3 2024, revisions totaled a net positive 87 units on an original total housing starts of 58,439 units. In Q4 2024, housing starts revisions totaled a net positive 17 units on an original total housing starts of 58,934 units. Housing starts revisions cover all urban centres of 10,000 population or more, reported at the Census Subdivision level on a quarterly basis.
- The monthly SAAR for Canada’s centres with a population of 10,000 or greater was flat in May (259,804 units) compared to April (259,916 units).
- The rural starts monthly SAAR estimate was 19,706 units.
- Among Canada’s big three cities, Montreal posted an 11% year-over-year increase in actual housing starts compared to May 2024, driven by more multi-unit starts. Vancouver recorded a 10% decrease in starts this month, driven primarily by lower multi-unit starts. A decrease in multi-unit starts also drove the 22% year-over-year decrease in Toronto’s housing starts compared to May 2024.
- Monthly Housing Starts and Other Construction Data are accessible in English and French on the CMHC website and the CMHC Housing Market Information Portal.
Rishi Sondhi, Economist, TD Economics, said with May’s solid level, housing starts are on track to increase in the second quarter. This bodes well for residential investment and should help offset some softness on this component coming through from home sales.
“Elevated building permits suggest that homebuilding can maintain a healthy pace in the near-term, but we don’t expect this to last. Homebuilding should cool moving forward as slower population growth, falling rents in key markets, high construction costs, and past declines in home sales weigh on 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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