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<\/a><\/p>\nPer-capita housing starts vary widely across Canada\u2019s major cities. (Source: CMHC)<\/p>\n<\/div>\n
Growth in total housing starts across seven of Canada\u2019s key Census Metropolitan Areas was flat in the first half of 2025 compared to 2024, with the six-month numbers showing sharp regional differences, reports Canada Mortgage and Housing Corporation (CMHC) in its latest Housing Supply Report (HSR).<\/p>\n
Calgary, Edmonton, Montreal, Ottawa and Halifax built new homes at record or near-record pace, or in line with historical averages in the first half of 2025, while a much different picture emerged in Canada\u2019s two most expensive housing markets: Vancouver and Toronto.<\/p>\n
According to CMHC tracking, Vancouver is seeing a slowdown in housing construction compared to 2024 and Toronto is on pace for its lowest annual housing starts total in 30 years.<\/p>\n
Helping to bring the numbers up was a surge in purpose-built rental starts across most of the CMAs covered in the HSR. These were bolstered by government support and incentives and offset the large drop in condominium apartment starts, particularly in Toronto, Vancouver and Montreal.<\/p>\n
\u201cWhile the increase in rental construction in the first half of 2025 was encouraging, the ongoing construction slowdown in the homeownership market poses risks to future housing supply, workforce retention, and affordability,\u201d said Tania Bourassa-Ochoa, deputy chief economist for CMHC. \u201cThe Canadian Home Builders\u2019 Housing Market Index for Q2 2025 reflects industry confidence and shows developers are frequently burdened by high development charges and time-consuming approval processes. Systemic changes to Canada\u2019s housing system are necessary to create an environment with more cost and time certainty to increase supply.\u201d<\/p>\n
On a per capita basis, Toronto\u2019s homebuilding activity fell to its lowest point since 1996, driven mainly by a 60 per cent drop in condominium starts. A pullback in investor demand during the first half of 2025 reduced project feasibility, leading to cancellations, delays and a sharp drop in construction.<\/p>\n
Many in the building community suggest construction costs and development charges need to be reduced to ease condominium prices and improve project viability.<\/p>\n
Rental apartment starts fared better than condos but still fell eight per cent compared to 2024. In the long-term, the slowdown in construction of all housing types could put further pressure on affordability when economic conditions improve and demand ramps up again, warned the housing agency.<\/p>\n
Meanwhile in Vancouver, condominium starts fell 13.4 per cent in the first half of 2025. Weak pre-construction sales led to the cancellation and pausing of projects that failed to meet the necessary 70 per cent threshold for financing. Rental apartments are making up a larger proportion of overall housing starts as developers take advantage of rental financing programs, says CMHC.<\/p>\n
Development charges have been cited as being a major barrier to homebuilding in Vancouver, but some changes are coming on that front. Beginning on January 1, 2026, new provincial regulations will allow homebuilders to defer up to 75 per cent of development charges until occupancy. There are an estimated 100,000 approved homes in the region currently stalled due to difficulties attributable to development charges.<\/p>\n
Montreal presented a bit of a bright spot as housing starts increased in the first half of 2025, supported by robust rental apartment construction. This growth was tempered by a slowdown in the condominium market, with units under construction at the lowest level in 15 years.<\/p>\n
Newly built condo units are too expensive for many buyers, causing developers to move away from this housing type, says CMHC.<\/p>\n
Alberta is seeing a stronger home construction market, with new home construction at record pace in Calgary for 2025 due to positive builder sentiment on the long-term growth of the region. Rental construction continues to surge, driven by strong population growth in Alberta, favourable zoning and financing programs. Updated municipal zoning is also supporting laneway housing, secondary suites and row housing, facilitating greater density.<\/p>\n
Calgary recently approved 10 office-to-residential conversion projects, supported by municipal funding and the Housing Accelerator Fund, with the potential to add an additional 1,100 homes to the downtown.<\/p>\n
Edmonton also posted robust starts growth, with increases in both apartment and single-detached construction. New municipal policies supporting more housing supply and downtown growth appear to be working, stated the agency. Inventory in the resale market has remained flat despite the high level of recently completed units, especially in the most affordable price ranges, due to continued strong demand and the CMA\u2019s overall affordability.<\/p>\n
CMHC did warn that the slowing pace of apartment completions could signal that development is being restricted by a shortage of skilled labour needed to maintain strong growth in residential construction.<\/p>\n
Elsewhere in the country, Ottawa was booming with housing starts nearly doubling in the first half of 2025, supported primarily by rental construction. This surge in new rental homes, combined with a slowdown in population growth means more supply for renters in the near and long term. Sales of new homes in Ottawa have been sluggish so far in 2025, particularly condominiums, with the number of new and active resale listings well above historical norms.<\/p>\n
New home construction remained at historically high levels in Halifax as well, driven mainly by the rental market. As of June, more than 10,000 rental units were under construction in the region, significantly above the 10-year average. Despite this significant growth, rental construction still faces obstacles, including long timeframes to obtain initial approval permits for projects.<\/p>\n
www.cmhc-schl.gc.ca<\/a><\/p>\n<\/div>\n
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