Canada’s housing market saw a 3% increase in housing starts in January, driven largely by a surge in multi-unit developments in Quebec and British Columbia, according to the Canada Mortgage and Housing Corporation (CMHC).
The seasonally adjusted annual rate of housing starts reached 239,739 units, up from 232,492 in December. Urban housing starts also rose 3%, totaling 220,643 units, with multi-unit urban starts—which include apartments, condominiums, and townhouses—jumping 8% due to a notable rise in purpose-built rental projects in key provinces.
Meanwhile, rural housing starts were estimated at 19,096 units.
Despite the positive momentum in housing construction, CMHC warns that foreign trade risks pose a potential challenge to further growth.
Tania Bourassa-Ochoa, Deputy Chief Economist at CMHC, noted that while the housing start figures indicate early signs of progress, trade instability could add “significant uncertainty” to the sector in the months ahead.
The six-month moving average of seasonally adjusted annual housing starts dropped 2.5%, landing at 236,892 units in January, reflecting the broader challenges facing the industry.
As Canada navigates economic shifts and external trade pressures, the housing sector remains a key area of focus, with policymakers and industry leaders closely monitoring trends to ensure long-term stability.