Canada Housing Starts Unexpectedly Drop to 5-Month Low

Housing starts in Canada fell 6.1% from the previous month to a seasonally adjusted annual rate of 261.4 thousand in May 2026, well above market forcasts of 255.1 thousand units. Urban housing starts in centers with populations over 10,000 people fell to 247 thousand. In turn, rural starts were estimated to increase to 14,357 units. By major cities, the largest increase was recorded in Montreal at 18% year-on-year, with decreases in Vancouver (-7%) and Toronto (-12%). Meanwhile, the six-month moving average of housing starts, which smooths monthly volatility, remained mostly flat, increasing 0.5% to 258 thousand units.

Housing starts in Canada jumped 17% to an annualized 279,300 units in April 2026 from the previous month, well above market forecasts of 240,000 units. The reading marked the highest level of housing starts in four months, pointing to renewed strength in residential construction activity. Rural starts were estimated at 13,694 units. Meanwhile, the six-month moving average of housing starts, which smooths monthly volatility, rose 3.2% to 256,777 units.

Housing starts in Canada fell by 6% from the previous month to a seasonally adjusted annual rate of 235.9 thousand in March of 2026, contrasting with market expectations that it would rise further to 255 thousand. It was the lowest rate in five months. Starts in urban centers fell to 224 thousand, also the lowest in five months, while rural starts fell to a rate of 11.8 thousand units, the lowest in over one year.