New data from Canada Mortgage and Housing Corporation shows housing construction continued to lose momentum in March 2026, even as year-over-year comparisons painted a rosier picture.
The six-month trend in housing starts fell 2.9% to 248,378 units, while the total monthly seasonally adjusted annual rate dropped 6% to 235,852 units — down from 250,961 in February. Actual housing starts in centres with a population of 10,000 or greater were up 10% year-over-year, with 16,398 units recorded compared to 14,935 in March 2025. Year-to-date starts sit at 49,206 units, up 9% from the same period last year, led by British Columbia, Ontario, and Quebec.
Among Canada's three largest cities, Toronto posted a 23% year-over-year increase driven by multi-unit starts, Vancouver was up 21% on the strength of both multi-unit and single-detached activity, and Montreal climbed 26% on higher multi-unit starts.
CMHC
Mathieu Laberge, CMHC Chief Economist and Senior VP, Housing Insights, cautioned against reading too much into the year-over-year gains. "March housing starts data point to a continued loss of momentum in housing construction, broadly in line with CMHC's housing market outlook. While actual starts increased compared to a year ago, this largely reflects the exceptionally low level of construction activity in the first quarter of last year," he said.
Laberge also flagged the inherent limitations of monthly starts data, noting it can be volatile and difficult to reconcile with conditions on the ground. CMHC is responding with new analysis this month examining the relationship between building permits and housing starts — two measures that together offer a fuller picture of where residential construction is headed. Building permits, CMHC notes, signal where starts activity is going; starts confirm what's actually underway.
Also new this quarter: CMHC has begun reporting non-market housing starts by intended market and dwelling type, covering 18 Census Metropolitan Areas across Canada. The data — which tracks dwellings developed or operated by public, non-profit, co-operative, or other community-based organizations — will be published on a quarterly basis.
