Canadian housing starts fall | Canadian Mortgage Professional

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Still, CMHC noted that construction ticked upwards on an annual basis in January, rising by 13% thanks to stronger year-over-year multi-unit starts.

Montreal and Vancouver saw their annual rates of housing starts slow dramatically in January – falling by 28% and 55% respectively – although Toronto posted a huge increase, with multi-unit starts propelling a 179% jump over December.

The news of a sluggish start to the year on the construction front arrives amid reports of plummeting homebuilder confidence, with high interest rates and building costs presenting significant challenges for the construction sector.

The Canadian Home Builders’ Association (CHBA) said its Housing Market Index, released in January, showed 64% of builders built fewer homes because of high interest rates in 2023, with 30% cancelling projects and 36% envisaging fewer starts in 2024 compared to the 12 months prior.

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