Canada Housing Starts Flat H1 2025 Amid Toronto, Vancouver Slowdown

Canada Mortgage and Housing Corp. (CMHC) reports that overall housing starts in Canada were flat in the first half of 2025 compared to 2024, with significant regional disparities. Cities like Calgary, Edmonton, Montréal, Ottawa, and Halifax experienced housing starts near record levels or historical averages, while Vancouver and Toronto saw notable slowdowns, with Toronto on pace for its lowest annual housing starts in 30 years. Toronto’s decline is largely driven by a 60% drop in condominium starts, attributed to reduced investor demand causing project cancellations and delays. Despite a surge in purpose-built rental starts supported by government incentives, the slowdown in homeownership construction poses risks to future housing supply and affordability. CMHC emphasizes that systemic changes are needed to address high development charges and lengthy approval processes to foster a more reliable housing market. The construction slowdown, especially in major markets, could exacerbate affordability pressures when demand recovers.