Housing starts in Canada’s large population centres rose 25% year over year in December and finished 2025 up 6% compared with 2024, according to new data from Canada Mortgage and Housing Corporation (CMHC).

Actual housing starts increased to 241,171 in 2025 from 227,697 in 2024. Large markets are defined as those with populations of 10,000 or more.

Canada’s six largest census metropolitan areas posted a combined 3.9% year-over-year increase in 2025. Record annual starts in Calgary and Edmonton, a 58% surge in Montréal, and a 12% gain in Ottawa–Gatineau offset declines in Toronto, where starts fell 31%, and Vancouver, which saw a 3% decrease.

On a seasonally adjusted basis nationally, total housing starts reached 259,028 units in 2025, the fifth-highest annual level on record and a 5.6% increase from 245,367 units in 2024. In centres with populations of 10,000 or more, 241,171 units were started during the year, up from 227,697 in 2024. CMHC said growth was driven by a second consecutive year of record rental-housing starts, which accounted for just over half of all starts in urban centres.

On a monthly basis, actual housing starts in centres of 10,000 people or more rose 25% year over year in December, with 20,716 units recorded compared with 16,531 units in December 2024. CMHC said this was the highest December total on record, led by strong gains in Ontario, which posted its highest monthly starts total of 2025.

On a seasonally adjusted basis, housing starts in all areas of Canada climbed 11% month-over-month in December, to 282,439 units from 254,625.

But CMHC continued to point to a decrease in housing starts in 2026 as purpose-built rental projects.

“While housing starts in 2025 finished ahead of 2024 and inched up in December, most of the momentum in housing construction occurred in the spring and summer,” said Mathieu Laberge, Chief Economist and senior vice-president of housing insights at CMHC. Since September, the trend in housing starts has consistently decreased.

“In 2025, economic uncertainty and the diminished viability of large residential towers encouraged a shift towards smaller-scale projects. As such, housing starts are beginning this year from a weaker position and market intelligence suggests slowing momentum for residential construction. These trends, along with geopolitical and trade uncertainty, remain top of mind as we expect to release an updated housing market outlook in February.”

The six-month trend in housing starts was essentially flat in December, edging down 0.1% to 264,428 units, while the seasonally adjusted annual rate for all areas increased 11% month over month to 282,439 units.

Photo: TD Economics