Housing Starts in Canada Fall 6% in March, CMHC Data Shows
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Housing starts in Canada slowed noticeably in March, according to the latest figures released by Canada Mortgage and Housing Corporation (CMHC). The data shows that housing starts in Canada declined on both a monthly and trend basis, signaling a broader cooling in construction activity across the country.
The seasonally adjusted annual rate of housing starts in Canada dropped 6% to 235,852 units in March, down from 250,961 units in February. CMHC also reported that the six-month moving average, a key trend indicator for housing starts in Canada, fell to 248,378 units from 255,874 the previous month.
According to CMHC, this slowdown reflects easing momentum in residential construction, consistent with broader expectations for the housing sector.
Multi-Unit Housing Starts Drive the Overall Decline
The latest CMHC report highlights that the decline in housing starts in Canada was mainly driven by weakness in the multi-unit segment, which includes apartments, condominiums, and other higher-density housing projects.
Urban housing starts in Canada fell 7% month-over-month to 184,900 units. In contrast, single-detached housing starts, which represent standalone homes, saw a smaller decline of 2%, reaching 39,100 units.
This uneven performance shows that housing starts in Canada are currently under more pressure in higher-density developments, which often depend on financing conditions, investor demand, and pre-construction sales.
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Regional Trends in Housing Starts in Canada Show Broad Weakness
The slowdown in housing starts in Canada was not limited to one region. CMHC data shows urban housing starts declined in 8 out of 10 provinces, pointing to widespread softness in construction activity.
Key regional highlights include:
- Significant declines in Ontario and British Columbia
- Lower activity across all Prairie provinces
- A slowdown in the Atlantic region
- A notable exception in Quebec, where housing starts in Canada rebounded strongly
This uneven regional performance suggests that while housing starts in Canada are slowing overall, local market conditions still vary significantly depending on demand, population trends, and development pipelines.
Economists Point to Volatility in Housing Starts in Canada
Economists tracking housing starts in Canada note that monthly fluctuations are not unusual. TD economist Rishi Sondhi pointed out that the March decline follows a strong February performance, reinforcing the volatility often seen in construction data.
He also noted that housing starts in Canada were down approximately 6% in the first quarter overall, suggesting potential pressure on residential investment and broader economic growth.
According to the analysis, housing starts in Canada have been trending downward since peaking in September 2025, and further moderation may continue due to:
- Slower population growth
- Elevated housing inventories
- Weaker pre-construction sales in major markets such as the Greater Toronto Area
Policy Support May Take Time to Impact Housing Starts in Canada
While government measures aimed at improving housing affordability and boosting supply are in place, their impact on housing starts in Canada may not be immediate.
Recent policy efforts include:
- GST/HST relief on certain new home construction
- Reduced development charges in Ontario
However, analysts suggest that despite these supportive measures, housing starts in Canada may take time to respond due to financing conditions and overall market uncertainty.
Actual Housing Starts in Canada Show Year-over-Year Growth in March
On a non-seasonally adjusted basis, actual housing starts in Canada in centres with populations of 10,000 or more reached 16,398 units in March, up from 14,935 units a year earlier.
Rural areas also contributed to the overall picture, with housing starts estimated at an annual rate of 11,846 units.
This indicates that while headline housing starts in Canada are weakening in trend terms, year-over-year comparisons still show some underlying resilience in certain areas.
Outlook for Housing Starts in Canada
Looking ahead, the outlook for housing starts in Canada remains cautious. CMHC and market economists expect continued moderation in construction activity as the market adjusts to higher costs, shifting demand, and changing demographic patterns.
Still, long-term demand for housing in Canada remains strong, which suggests that housing starts in Canada could stabilize once affordability pressures and financing conditions improve.
For now, the latest CMHC data confirms that housing starts in Canada are in a cooling phase, with both monthly and trend indicators pointing to slower construction momentum across most regions.