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The housing starts trend line continued to rise in August, but a slowing adjusted annual rate has CMHC suggesting the pace of residential construction may be slowing.
Housing Starts in Canada – All Areas (CNW Group/Canada Mortgage and Housing Corporation)
Despite significant year over year growth in housing starts in centres with populations of at least 10,000 residents, the residential construction industry appears to be moving into a period of slowdowns, reports the Canada Mortgage and Housing Corporation (CMHC).
According to its latest look at housing starts, the six-month trend increased by 1.6 per cent in August, to sit at 267,259 units. Also on the rise were actual housing starts in centres with a population of 10,000 or greater, with 18,408 units recorded in August, compared to 16,775 units in August of 2024 – a 10 per cent gain over the past 12 months. Year-to-date, total starts in these centres were also up, reaching 156,283 units in August, an increase of four per cent over the same period in 2024.
Despite the gains, the total monthly SAAR of housing starts for all areas in Canada was down 16 per cent for the month, falling from 293,537 units in July to 245,791 units in August.
“The slowdown in the SAAR that we saw in August is notable as it is well below the six-month trend line. 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,” said CMHC deputy chief economist Kevin Hughes. “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.”
Among Canada’s big three cities, Vancouver recorded a 46 per cent year-over-year increase in starts compared to the same month last year, driven by higher multi-unit and single-detached starts. Montreal posted a 32 per cent year-over-year increase in actual housing starts, driven by significantly higher multi-unit starts. And Toronto’s housing starts were similar to what the city experienced in August of 2024.