The pace of new home construction in Canada accelerated in 2025, offering a glimmer of hope for a market grappling with affordability and supply challenges. According to data released by the Canada Mortgage and Housing Corporation (CMHC), housing starts across the country totalled 259,028 units last year.
A Notable Year-Over-Year Increase
This figure represents a significant 5.6 per cent increase compared to the total housing starts recorded in 2024. The data, published by The Canadian Press on January 16, 2026, indicates a sustained effort to boost the national housing supply amidst ongoing demand pressures.
The report provides a high-level snapshot of national construction activity. While the CMHC release did not include a detailed provincial or municipal breakdown within the provided information, the aggregate national number is a key economic indicator closely watched by policymakers, developers, and potential homebuyers alike.
Context and Market Implications
An increase in housing starts is generally viewed as a positive step toward addressing Canada's chronic housing shortage. More new units entering the pipeline can help moderate price growth over the long term and provide more options for Canadians looking to enter the housing market.
The 5.6 per cent growth rate suggests that construction activity is moving in a positive direction, though the absolute number of starts will be measured against the substantial housing supply gap identified by various experts and government studies. The performance in 2025 sets a new benchmark for future years as all levels of government continue to emphasize housing construction as a top priority.
Looking Ahead for the Housing Sector
The CMHC data point for 2025 serves as a crucial post-year benchmark. Analysts will be examining subsequent monthly reports to see if this growth trend continues into 2026. Factors such as interest rates, construction material costs, and labour availability will continue to play decisive roles in determining whether the pace of housing starts can be maintained or increased further.
For Canadians, the increase in housing starts is a signal that new supply is being added to the market. However, the ultimate impact on affordability and availability will depend on the type, size, and location of these new units, as well as the relentless pace of underlying demand driven by population growth.
