Canada built more homes in 2025 than it did the year before — but the year ended with less momentum than the topline numbers might suggest.
According to the Canada Mortgage and Housing Corporation (CMHC), housing starts across all areas of the country reached 259,028 units in 2025, up 5.6% from 2024 and ranking as the fifth-highest annual total on record. In centres with populations of 10,000 or more, starts rose 6% year-over-year to 241,171 units, driven largely by another record-breaking year for rental construction.
For the second consecutive year, rental housing accounted for just over half of all housing starts in Canada’s urban centres.
Regionally, Canada’s six largest census metropolitan areas posted a combined 3.9% increase compared to 2024. That growth was led by record annual starts in Calgary and Edmonton, a 58% jump in Montréal, and a 12% increase in Ottawa–Gatineau, which more than offset declines in Toronto (-31%) and Vancouver (-3%).
The year ended on a strong monthly note. In December, the seasonally adjusted annual rate of housing starts rose 11% month-over-month to 282,439 units, while actual starts in centres of 10,000 or more climbed 25% year-over-year, reaching 20,716 units — the highest December total on record. Ontario was a major contributor, recording its highest monthly starts total of the year. Among the country’s three largest cities, December activity rebounded sharply, with Toronto, Montréal, and Vancouver all posting year-over-year increases, largely driven by multi-unit construction.
Still, CMHC cautions that the broader trend tells a more restrained story.
The six-month trend in housing starts — which smooths out monthly volatility — was essentially flat in December, edging down 0.1% to 264,428 units, and has been declining since September. According to CMHC Chief Economist Mathieu Laberge, most of the momentum in 2025 occurred earlier in the year, with economic uncertainty and the reduced feasibility of large residential towers pushing developers toward smaller-scale projects.
As a result, housing starts are entering 2026 from a weaker position, with CMHC flagging slowing construction momentum alongside ongoing geopolitical and trade uncertainty.
An updated Housing Market Outlook is expected in February, offering a clearer read on whether late-2025 softness is temporary — or a sign of what’s next for Canada’s housing supply pipeline.
