August 18, 2026
Canadian housing starts continued to moderate in July 2026, with fewer new projects beginning in several major markets even as completions increased and a substantial number of homes remained under construction, according to Canada Mortgage and Housing Corporation (CMHC).
The six-month trend in housing starts decreased 0.5% from June to 247,377 units. The seasonally adjusted annual rate (SAAR) for all areas of Canada fell 5% month-over-month, from 240,773 units in June to 229,074 units in July.
Actual housing starts in centres with populations of 10,000 or more reached 18,834 units, down 19% from July 2025. Year-to-date starts totalled 131,851 units, 4% below the same period last year.
Despite fewer new starts, Canada continues to have a significant housing construction pipeline. In centres with populations of at least 50,000, 373,091 units were under construction in July, up 0.6% from June.
Completions increased 8.1% month-over-month to 19,773 units, while units with approved building permits that had not yet started rose 3% to 141,480.
CMHC Deputy Chief Economist Tania Bourassa-Ochoa said the large volume of housing already under construction should continue supporting completions and adding supply, although new starts are expected to remain subdued in the coming months.
Performance varied considerably among Canada’s three largest census metropolitan areas.
Montreal housing starts increased 3% year-over-year, supported by higher multi-unit construction. Vancouver recorded a 42% decline, reflecting lower multi-unit and single-detached starts, while Toronto declined 10% due to fewer multi-unit starts.
The figures indicate that while Canada’s existing residential construction pipeline remains substantial, challenges bringing new projects to market continue to weigh on future housing supply.
Explore related articles you won’t want to miss:
Top Construction Technology Trends Transforming the Industry in 2026
How AI Is Transforming Construction Project Management
Smart Construction Sites: How IoT is Changing Jobsite Management
Digital Twins in Construction: Transforming Project Planning and Operations
Building Information Modeling (BIM): Driving the Future of Digital Construction
Robotics and Automation in Construction: Reshaping the Future of Jobsite Productivity
The Future of Connected Construction: Integrating AI, BIM, IoT, Digital Twins and Robotics
What Is BIM in Construction? A Practical Guide to Building Information Modeling
