Canadian housing starts rebound but fall short of long-term needs, CMHC finds

Canada’s housing starts saw a small rebound in September, with a 5% rise to 223,808 units on an annualized basis. However, the Canada Mortgage and Housing Corporation (CMHC) warns this boost falls short of meeting the country’s broader housing needs, especially as major cities continue to face affordability issues.

While provinces like Alberta and Quebec recorded growth, Ontario and British Columbia saw declines, particularly in cities like Toronto and Vancouver, which posted year-over-year drops of 20% and 19%, respectively. Experts note that challenges such as high building costs and labor shortages are hampering construction.

In response to the housing crisis, some advocate for a more aggressive building strategy to address long-term housing demands. Industry analysts stress that the current pace of construction, while momentarily improved, isn’t enough to address the deep-rooted supply gaps impacting affordability across Canada.

Looking ahead, the CMHC plans to launch a Housing Design Catalogue by December, which could help accelerate future building efforts. However, the corporation and analysts agree that the current pace of starts will need to continue growing to make a lasting difference in housing accessibility.