Canada Housing Starts Miss Expectations in July

Canada’s housing starts fell 5% in July to a seasonally adjusted annual rate of 229,074 units, down from 240,773 in June and below market expectations of 248,000 units. The rural starts estimate stood at 11,274 units. Actual monthly housing starts declined 19% year-on-year in centres with a population of 10,000 or more, with 18,834 units recorded in July 2026. Vancouver starts fell 42%, driven by lower multi-unit and single-detached starts, while Toronto starts declined 10% on weaker multi-unit construction. Montréal posted a 3% increase, supported by higher multi-unit starts. Year-to-date housing starts totaled 131,851 units, down 4% from the same period in 2025. The six-month trend was virtually unchanged in July, falling 0.5% to 247,377 units.

Housing starts in Canada declined 6% from the previous month to a seasonally adjust annual rate of 239 thousand units in June 2026, compared to a downwardly revised 253 thousand units in May and falling short of markets expectations of 258 thousand units. The number of building permits fell 1.1% compared to the previous month, while units under construction in centers with a population above 50 thousand was flat, edging up 0.2% over the month to 375,469 units. Meanwhile, completed contructions totalled 18,298 units, up 8.4% compared to May. By region, Vancouver recorded the last decrease, by 35%, due to lower multi-unit and single-detached starts. In contrast, the largest increase was recorded in Toronto, up 25%, due to higher multi-unit starts, followed by Montreal (10%).

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.