CMHC highlights regional imbalance in latest construction data
Canada’s housing construction activity showed minimal change in May, with the annual pace of new housing starts declining slightly by 0.2% compared to April, according to data released Monday by Canada Mortgage and Housing Corporation (CMHC).
The seasonally adjusted annual rate of housing starts reached 279,510 units in May, down from 280,181 units in April. The six-month trend measure, which smooths out monthly fluctuations, remained nearly unchanged at 243,407 units, representing a modest 0.8% increase.
Despite the flat monthly performance, actual housing starts in centres with populations of 10,000 or greater showed stronger year-over-year growth, rising 9% to 23,745 units in May compared to 21,814 units in the same month last year. The year-to-date total reached 90,767 units, up 1% from the same period in 2024.
Regional variations painted a mixed picture across the country. Growth was primarily driven by increases in single-detached homes and purpose-built rental units in Quebec and the Prairie provinces, while major urban centres faced challenges.
“Growth in actual starts activity in May was once again driven by increases of single-detached homes and purpose-built rentals in Quebec 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.
Among Canada’s three largest cities, Montreal bucked the trend with an 11% year-over-year increase in actual housing starts, driven by more multi-unit construction. Vancouver experienced a 10% decrease, while Toronto saw a more significant 22% decline compared to May 2024, both cities affected by reduced multi-unit starts.
The data revealed that urban centres with populations of 10,000 or greater maintained an annual pace of 259,804 units in May, compared to 259,916 units in April. Rural housing starts were estimated at an annual rate of 19,706 units.
CMHC uses the trend measure alongside monthly data to provide clearer insights into upcoming housing supply, as the multi-unit segment can vary significantly from month to month and potentially mislead analysts when viewed in isolation.
The housing agency will release June housing starts data on July 15.
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