Ottawa, ON – May 15
Canadian housing construction activity surged in April 2025, driven by significant growth in new home starts across Québec and the Prairie provinces, even as Ontario and British Columbia continued to see declines. The Canada Mortgage and Housing Corporation (CMHC) reports that national housing starts rose sharply in both trend and monthly figures, pointing to a notable uptick in residential development despite ongoing economic uncertainties.
According to CMHC data released on May 15, the six-month trend in housing starts increased by 2.4% to 240,905 units. This trend measure is a six-month moving average of the seasonally adjusted annual rate (SAAR) of total housing starts, offering a smoothed-out view of monthly fluctuations.
But it’s the April monthly figures that highlight the most dramatic shift. On a seasonally adjusted annual basis, total housing starts across the country jumped to 278,606 units in April—up 30% from March’s 214,205 units. In urban centres with populations of 10,000 or more, monthly SAAR housing starts climbed 28% from the previous month, reaching 259,788 units. Rural housing starts were estimated at 18,818 units for the month.
April 2025 also marked a historic high for actual housing starts recorded in that month, with 21,720 units initiated in centres with populations over 10,000. That represents a 17% increase compared to April 2024, when 18,539 new builds were started. However, year-to-date figures show a slight decline of 2% compared to the same period last year, with 67,022 housing starts recorded between January and April.
Kevin Hughes, Deputy Chief Economist at CMHC, attributed the growth to region-specific factors. “The increased starts activity in April was driven by increases across all housing types in Québec and the Prairie provinces, while starts in Ontario and British Columbia declined on a year-over-year basis again this month,” Hughes said. “The current economic uncertainty will have consequences for the supply and demand of new housing. CMHC will be monitoring these effects closely over the coming months.”
Big Cities Show Mixed Results
The performance of Canada’s largest metropolitan areas illustrates the uneven pace of housing activity across the country. Montreal posted a dramatic 64% year-over-year increase in housing starts, propelled by a surge in multi-unit developments. Vancouver saw a more modest 6% rise in starts, also driven primarily by multi-unit buildings.
In contrast, Toronto experienced a sharp 25% drop in housing starts compared to April 2024. CMHC data indicates that a slowdown in multi-unit starts was the primary reason for this decline, underlining the volatility of this segment of the market. Because the multi-unit category—including condominiums and apartments—accounts for a significant portion of total starts in major urban areas, fluctuations can have a substantial effect on monthly figures.
A Broader Look at Housing Market Indicators
CMHC cautions that while monthly SAAR figures can reflect sharp swings due to the timing and volume of large multi-unit projects, the six-month trend measure helps smooth out such volatility and provides a clearer picture of long-term trends. Both indicators are crucial for understanding the state of the Canadian housing supply pipeline.
Housing starts are a vital indicator of market momentum and upcoming supply. CMHC gathers this data through its Starts and Completions and Market Absorption surveys, which also inform broader housing policy decisions. These tools offer insight into both the short-term dynamics and the structural challenges facing the Canadian housing market.
CMHC’s Role in Canadian Housing Policy
As Canada continues to grapple with affordability issues and supply shortages, CMHC plays a central role in promoting stability and long-term sustainability in the housing sector. Its mortgage insurance programs facilitate home ownership and support the development and maintenance of rental housing. CMHC also collaborates with various stakeholders—including all levels of government, private developers, and non-profit organizations—to promote equity, affordability, and climate-friendly housing solutions.
The next housing starts report from CMHC, covering May 2025, will be released on June 16 at 8:15 a.m. Eastern Time. Additional housing statistics and data tools are available on CMHC’s Housing Market Information Portal, accessible in both English and French.
