The Canada Mortgage and Housing Corp. reported a 17% decrease in the annual rate of housing starts for October compared to September. The seasonally adjusted rate for new home construction was 232,765 units in October, down from 279,174 in the previous month. Tania Bourassa-Ochoa, the deputy chief economist at CMHC, attributed the decline to reduced starts in Ontario and British Columbia, although markets in Montreal, Calgary, and Edmonton saw increased activity, keeping the national year-to-date total higher than the previous year.
In October, actual housing starts in centers with populations of 10,000 or more totaled 19,174 units, slightly lower than the same period in 2024. However, the year-to-date total for these centers increased to 197,207 units from 188,660 in 2024. The six-month moving average of the seasonally adjusted annual rate of total housing starts decreased to 268,907 in October from 277,081 in September.
Bourassa-Ochoa highlighted the significant regional differences in housing construction trends across the country, noting that these results reflect decisions made months or even years ago. Economist Rishi Sondhi from TD Economics mentioned that the data indicates a healthy pace in starting new units, particularly in the purpose-built rental market. He pointed out that while homebuilding in the rest of Canada remains robust, Ontario is experiencing a slowdown in condo construction, which may lead to a decline in new construction starts in the coming months.
Sondhi predicted a cooling in homebuilding next year due to modest population growth affecting rents and weak pre-sales activity impacting starts in the ownership market.