Canada’s housing construction sector delivered mixed results in May 2026, according to the latest data from Canada Mortgage and Housing Corporation (CMHC). While the national housing starts trend remained largely unchanged, signs of slowing future supply are beginning to emerge despite gains in units under construction and completed homes.

CMHC reported that the six-month trend in housing starts increased by just 0.5% in May, reaching 258,010 units. The trend measure is based on a six-month moving average of the seasonally adjusted annual rate (SAAR) of housing starts across Canada and is considered a key indicator of long-term residential construction activity.

The total monthly SAAR of housing starts for all areas in Canada declined 6% to 261,377 units in May, down from 278,380 units recorded in April.

Actual housing starts in centres with populations of 10,000 or more totalled 22,633 units in May, representing a 5.2% decrease compared to 23,879 units during the same month in 2025.

Despite the monthly decline, year-to-date housing starts reached 93,644 units, up 3% compared to the first five months of 2025. Increased residential construction activity in Ontario and British Columbia helped offset declines reported across Prairie provinces.

According to CMHC Deputy Chief Economist Aled Ab Iorwerth, the latest results indicate that construction activity remains uneven across the country.

One positive indicator was the continued growth in projects already underway. The number of housing units under construction in urban centres with populations exceeding 50,000 increased 0.9% month-over-month to 374,662 units.

Housing completions also posted strong gains. Construction was completed on 16,880 units in May, an increase of 10.6% compared to April.

However, the number of approved housing units that have not yet started construction declined by 2.4% to 138,842 units. This decrease may signal softer future construction activity and reduced housing supply growth in the coming months.

Performance varied among Canada’s largest metropolitan areas.

• Montreal recorded an 18% year-over-year increase in housing starts, driven primarily by stronger multi-unit residential development.
• Vancouver experienced a 7% decline due to fewer multi-unit housing starts.
• Toronto posted a 12% decrease in housing starts compared to May 2025.

Meanwhile, the rural housing starts monthly SAAR estimate was 14,357 units.

While housing starts remain relatively stable and year-to-date activity is trending higher than last year, the decline in approved but unstarted projects suggests that future housing supply growth may face challenges.

Combined with market intelligence and uneven regional performance, CMHC’s latest data points to a housing construction sector that remains active but is showing signs of slowing momentum. For builders, developers, and policymakers, the coming months will be closely watched as Canada continues to address housing supply and affordability challenges across the country.

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