The State of Canadas Housing Construction in 2025: Insights and Analysis

Unpacking the 2025 Canadian Housing Construction Stats

Building enough homes to match Canada's rapid population growth remains one of the country's most critical economic challenges. According to the Canada Mortgage and Housing Corporation (CMHC), total housing starts across Canada reached 259,028 units in 2025, reflecting a 5.6% increase from the 245,367 units built in 2024. While this represents the fifth-highest annual construction figure on record, it still falls short of the long-term supply targets needed to restore housing affordability.

Multi-Unit Developments Lead the Charge

The growth in construction was driven almost entirely by multi-unit starts (such as apartments, condos, and townhouses). Developers shifted their focus toward higher-density purpose-built rental buildings, supported by government initiatives to waive GST/HST on rental construction. Here is how the starts break down by unit type:

• Total Multi-Unit Starts: 206,754 units (including 170,019 apartments and condos, 25,250 row houses, and 11,485 semi-detached units).
• Single-Detached Home Starts: 52,274 units. Detached construction remains historically low due to high land development costs and municipal zoning constraints.

Regional Discrepancies: A Tale of Two Realities

The national 5.6% construction growth masks major differences between provinces and cities. While some regions surged, others saw activity drop significantly:

• Slowdown in Toronto and Vancouver: High borrowing costs, developer uncertainty, and project delays led to year-over-year declines in housing starts in Canada's two largest urban centers.
• Sustained Momentum in Alberta: In contrast, Alberta's strong population inflows and relatively lower construction barriers helped sustain growth in both single-family and multi-unit projects.

Addressing Developer Challenges in 2026

Despite the high demand for homes, builders face persistent economic headwinds. Labor shortages, elevated material costs, and developer financing costs have led to project cancellations and longer construction times. CMHC estimates that Canada still needs to build an additional 3.5 million housing units by 2030 to bridge the supply gap.

If you are looking to purchase a pre-construction property, refinance a construction project, or navigate the market in 2026, working with a licensed mortgage professional is key. Dallas Martin, Level 2 Mortgage Agent (FSRA License #M17001133) at New Life Mortgages (FSRA Brokerage #13466), can help you review builder agreements, secure a 120-day rate lock, and structure your financing for a successful closing.