The six-month trend in housing starts was virtually flat in February, with a slight increase of 0.4% to 256,005 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, according to a report released Monday by Canada Mortgage and Housing Corporation.
But the CMHC said actual housing starts were up 10% year-over-year in centres with a population of 10,000 or greater, with 15,886 units recorded in February, compared to 14,420 units in February 2025. The year-to-date total was 31,974 units, up 5% from the same period in 2025, driven by higher starts to begin the year in British Columbia and Ontario, as higher starts across the province have, so far, made up for decreases in Toronto.
The total monthly SAAR of housing starts for all areas in Canada increased 4.5% in February (250,900 units) compared to January (240,148 units), added the CMHC.
Kevin Hughes
“In February, the six-month trend in housing starts was essentially flat, indicating that the trend in new construction activity remains relatively steady despite ongoing monthly volatility,” said Kevin Hughes, CMHC’s Deputy Chief Economist, CMHC. “Looking ahead, we expect heightened levels of business uncertainty and construction costs to weigh on the rate and trend of housing starts in the near-to-medium term.”
Rishi Sondhi, Economist, TD, said: “As expected, housing starts increased last month after January’s weather impacted print. However, the bounce-back was tepid. So far in the first quarter, starts are down about 4% (not annualized) compared to their Q4 level, boosting the risk that starts act as a drag on residential investment in Q1 GDP growth.
“On a trend basis, starts have been generally cooling since September of last year. We think the pace of starts will continue to ease, impacted by weak population growth, high costs, elevated levels of unsold inventories, and very weak pre-sales activity in key markets like the GTA. January’s decline in the number of residential permits issued is consistent with this view.”
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, 2025 and 2026.
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