Canada’s housing starts continued to trend lower in June 2026, reflecting growing pressures from higher development costs, market uncertainty, and softer housing demand, according to the latest data from the Canada Mortgage and Housing Corporation (CMHC).

The six-month trend measure of housing starts—a key indicator of residential construction activity—fell 2.8% to 248,123 units, while the seasonally adjusted annual rate (SAAR) declined 6% to 238,971 units, down from 253,083 units in May.

Actual housing starts in urban centres with populations exceeding 10,000 reached 20,265 units in June, representing a 13% decrease compared to 23,292 units recorded during the same month in 2025.

For the first six months of 2026, Canada recorded 113,017 housing starts, down 1% from the same period last year, indicating a gradual slowdown in residential construction activity.

According to Kevin Hughes, Deputy Chief Economist at CMHC, the current trend aligns with CMHC’s earlier forecasts.

He noted that rising construction costs, economic uncertainty, weaker buyer demand, and an increasing inventory of unsold homes continue to discourage new residential development. CMHC expects these conditions to persist, resulting in fewer housing starts through the remainder of 2026 and into 2027.

Despite fewer housing starts, construction activity remained relatively steady across Canada’s larger urban centres.

The number of residential units currently under construction in communities with populations above 50,000 increased slightly by 0.2%, reaching 375,469 units.

Housing completions rose 8.4% month over month, with 18,298 homes completed during June, helping add new supply to the market.

Meanwhile, the number of approved building permits awaiting construction declined 1.1% to 137,324 units, suggesting developers remain cautious about launching new projects.

Canada’s largest metropolitan areas experienced mixed results during June:

• Montreal posted a 10% year-over-year increase in housing starts, driven primarily by growth in multi-unit residential projects.
• Toronto recorded a 25% increase, also supported by stronger multi-unit construction activity.
• Vancouver experienced a 35% decline, reflecting reduced activity in both multi-unit and single-detached housing.

Rural housing starts were estimated at a seasonally adjusted annual rate of 11,141 units.

While home completions continue to improve overall housing supply, the latest CMHC data suggests developers remain cautious as affordability challenges, financing costs, and uncertain market conditions continue to weigh on new residential construction.

The pace of future housing development will likely depend on improving market confidence, stronger buyer demand, and measures that help reduce development costs while supporting long-term housing supply across Canada.

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