Canada Housing Starts Slightly Lower in May as Regions Diverge, Says CMHC

08:34 AM EDT, 06/16/2025 (MT Newswires) -- The total monthly seasonally adjusted annual rate (SAAR) of housing starts for all areas in Canada fell 0.2% month-over-month in May to 279,510 units, said Canada Mortgage and Housing Corporation (CMHC) on Monday.

May's housing starts declined less than the 248,000 consensus figure provided by MUFG.

The rural starts monthly SAAR estimate was 19,706 units, noted CMHC. The monthly SAAR for Canada's centres with a population of 10,000 or greater was flat in May at 259,804 compared with April.

"Growth in actual starts activity in May was once again driven by increases of single-detached homes and purpose-built rentals in Quebec and the Prairie provinces," said Tania Bourassa-Ochoa, CMHC's deputy chief economist. "By contrast, weak condominium market conditions in Toronto and Vancouver have contributed to significant declines in overall housing starts in these regions."

Among Canada's big three cities, Montreal posted an 11% year-over-year increase in actual housing starts compared with May 2024, driven by more multi-unit starts. Vancouver recorded a 10% decrease in starts this month, driven primarily by lower multi-unit starts. A decrease in multi-unit starts also drove the 22% year-over-year decrease in Toronto's housing starts compared to May 2024.

CMHC, the country's national housing agency, defines a housing start as the beginning of construction work on the building where the dwelling unit will be located. It uses a rate adjustment to remove the data's seasonal variations.

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