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

Canada's housing starts rose in September after an August dip, reaching an annualized rate of 223,808 units. However, the Canada Mortgage and Housing Corporation (CMHC) warns that this growth is insufficient to address the country’s ongoing housing crisis, which requires much higher construction rates for long-term stability.

The six-month trend showed a 1.9% decrease, highlighting a slowdown despite temporary gains. While Alberta and Quebec saw slight increases in new housing starts, key markets like Ontario and British Columbia faced substantial drops, exacerbating supply shortages.

Experts, including CMHC analysts, stress that ongoing challenges—high costs and limited labor—will likely persist. These obstacles, alongside a shortage of affordable units, make meeting Canada’s growing housing needs particularly challenging.

In response, CMHC advocates for a continuous surge in construction to achieve affordability targets, while others anticipate that upcoming government measures, such as a Housing Design Catalogue, could help speed up development. For now, though, the housing deficit remains a pressing national issue.