Canada Housing Starts Unexpectedly Drop to 5-Month Low

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.

Housing starts in Canada increased 4.5% in February 2026 to a seasonally adjusted annual rate of 250,900 units, up from 240,148 in January, below market expectations of 252,500 units. Rural starts were estimated at a seasonally adjusted annual rate of 20,400 units. Actual housing starts were up 10% year-over-year in centres with a population of 10,000 or greater. By province, Vancouver recorded a 60% increase in actual starts due to higher multi-unit and single-detached starts. Meanwhile, Toronto declined 28% due to lower multi-unit and single-detached starts.

Housing starts in Canada sank by 15% from the previous month to a seasonally adjusted of 238,049 in January of 2026, firmly below market expectations of 263,300, to mark the lowest rate in five months. Urban housing starts in centers with populations over 10,000 people fell by 18.7% to 218,182. In turn, rural starts were estimated at the 20,487 mark.