Actual housing starts in centres with populations over 10,000 rose 10% year-over-year, reaching 18,408 units in August
Canadian home construction lost momentum in August with the number of new housing starts falling 16% from July to 245,791 units, according to Canada Mortgage and Housing Corporation (CMHC). This monthly decline came despite a slight increase in the six-month average for new construction.
“If sustained, this adjustment in the level of housing starts would be consistent with both our forecast and current market intelligence indicating a slowdown in the pace of housing construction. It is worth noting that current housing starts levels are generally reflective of decisions made when interest rates were receding and investor confidence was higher than it is today,” said Kevin Hughes, CMHC’s deputy chief economist.
Year-over-year growth remains positive
Despite the monthly pullback, actual housing starts in centres with populations over 10,000 rose 10% year over year, reaching 18,408 units in August compared to 16,775 a year earlier. The year-to-date total stood at 156,283 units, up 4% from the same period in 2024. The rural starts monthly SAAR estimate was 22,063 units.
Among Canada’s largest cities, Vancouver led with a 46% year-over-year increase in starts, driven by both multi-unit and single-detached projects. Montreal posted a 32% jump, fuelled mainly by multi-unit construction. Toronto’s housing starts held steady compared to August 2024.
Overall, Canadian housing starts stayed flat in the first half of 2025, with big differences between cities, according to another CMHC report. Calgary, Edmonton, Montreal, Ottawa, and Halifax saw housing starts reach or approach record highs, while Toronto and Vancouver—Canada’s priciest markets—slowed national growth.
Housing market context and broader implications
The new numbers arrive as policymakers and industry leaders keep working to address housing affordability and supply issues. Lenders, developers, and government agencies rely on CMHC’s Starts and Completions Survey to track new housing supply and guide decisions.
Canadian Home Builders’ Association (CHBA) chief executive officer Kevin Lee recently highlighted the importance of taking quick action to remove barriers for builders in the province and across Canada, including a removal of the often restrictive GST on home purchases.
“That’s been another drag on construction across the country and in Ontario. So hopefully that’ll come in in September – but we’ve been advocating that we really do need it for all buyers. There’s no way we’re getting anywhere near that 500,000 housing starts goal [prime minister Mark Carney’s target for annual construction] if we don’t do something about the GST for all buyers,” he told Canadian Mortgage Professional.
Last Sunday, Carney provided new details about Build Canada Homes, a centrepiece of his party’s spring federal election campaign aimed at addressing a generational housing crisis in Canada. One of its first projects include developing six public land sites in Toronto, Ottawa, Winnipeg, and Edmonton to deliver 4,000 factory-built homes, with additional capacity for up to 45,000 units nationwide.
