Housing starts in Canada’s largest markets rose 10% in August; however, a monthly decline indicates that the market is slowing down, says the Canada Mortgage and Housing Corporation.

Actual housing starts in Canadian centres with populations of 10,000 or more rose 10% year-over-year to 22,156 units in August, CMHC reported. But the total seasonally adjusted annual rate of housing starts for all areas of Canada (245,791 units) dropped 16% from July 2025.

“The slowdown in the SAAR that we saw in August is notable as it is well below the six-month trend line,” said Kevin Hughes, a CMHC deputy chief economist.

The six-month trend increased 1.6% year-over-year to 267,259 on an SAAR basis.

“If sustained, this adjustment in the level of housing starts would be consistent with both our forecast and current market intelligence indicating a slowdown in the pace of housing construction,” said Hughes. “It is worth noting that current housing starts levels are generally reflective of decisions made when interest rates were receding and investor confidence was higher than it is today.”

Vancouver recorded 3,028 actual housing starts, a 46% year-over-year gain driven by higher multi-unit and single-detached activity. Montreal posted 2,725 starts, up 32% on the strength of multi-unit construction. Toronto registered 3,543, a total nearly unchanged from August 2024. Together, the three cities accounted for a total of 9,296 housing starts, approximately 42% of total urban starts in August.

Rural housing starts fell 4% year-over-year, while the total for all areas of Canada increased 8% compared with August 2024.

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