Canadian housing starts experienced a significant 13% decline in December, according to data released by the Canadian Mortgage and Housing Corporation (CMHC) on Thursday.
The seasonally adjusted annualized rate of housing starts dropped to 231,468 units, down from a revised 267,140 units in November. The decline reflects a slowdown in groundbreaking for multiple-unit and single-family detached urban homes.
Economists had forecast housing starts to fall to 245,000 units, but the actual figures fell short of expectations.
Despite the sharp monthly drop, total housing starts for 2024 were 2% higher than in 2023, driven by record-high rental construction levels.
The data underscores ongoing volatility in Canada’s housing market, which remains under pressure from high borrowing costs, labor shortages, and shifting demand.