Housing Starts Surge 30% in April, CMHC Reports
April 2025 saw a significant 30% increase in Canadian housing starts compared to March, indicating a boost in residential construction activity.
According to the Canada Mortgage and Housing Corporation (CMHC), the seasonally adjusted annualized rate of new home construction rose to 278,606 units in April, up from 214,205 units in March. This surge surpasses economists’ expectations and suggests a response to ongoing housing demand and affordability concerns.
Key Highlights:
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Urban vs. Rural Starts: Urban housing starts climbed 28% to an annual rate of 259,788 units, while rural starts were estimated at 18,818 units. Actual urban housing starts in April totaled 21,720 units, up 17% from 18,539 units in April 2024
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Regional Variations:
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Increases: Quebec and the Prairie provinces led the surge. Montreal saw a 64% year-over-year increase in housing starts, primarily driven by multi-unit projects. Saskatchewan’s year-to-date starts rose by 94%, Quebec by 55%, and Newfoundland by 47%
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Declines: Ontario and British Columbia experienced declines. Toronto’s housing starts fell by 25% year-over-year, while Ontario and BC saw decreases of 10% and 3%, respectively
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Six-Month Trend: The six-month moving average of the overall SAAR of housing starts increased by 2.4% in April to 240,905 units, indicating a positive trend in new housing supply
Implications:
The substantial increase in housing starts suggests a potential easing of housing supply constraints in certain regions. However, the declines in key markets like Ontario and BC highlight ongoing challenges in addressing housing affordability and availability. CMHC’s Deputy Chief Economist, Kevin Hughes, noted that economic uncertainties could impact the supply and demand dynamics of new housing in the coming months .
This surge in housing starts may influence policy decisions and market strategies aimed at balancing housing supply across Canada.