Housing starts rose 19% year-over-year in Canada’s largest markets in September as Montreal and Toronto led the way, says a new Canada Mortgage and Housing Corporation report.

Total starts rose to 22,375 units in centres of 10,000 people or more from September 2024. Montreal and Toronto contributed more than 25% of the total national starts, due mainly to increased rental-apartment project launches.

The year-to-date total reached 178,033, marking a 5% year-over-year increase. The seasonally adjusted annual rate (SAAR) of housing starts nationwide grew 14% month-over-month to 279,234 units in July versus 244,543 in August. Meanwhile, the six-month trend moved up 4.1% to 277,147 units.

But CMHC officials continue to be wary of an anticipated slowdown in residential construction.

“While these results indicate some resilience, it is worth noting that current housing starts levels are generally reflective of decisions made months or even years ago when investor confidence was higher than it is today,” said Tania Bourassa-Ochoa, a CMHC’s ceputy chief economist.

Montreal posted 135% and 112% year-over-year gains, respectively. But Vancouver, the country’s third-largest market, experienced a 1% decline.

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