December recorded 20,716 starts in urban centres
Canada’s six largest CMAs recorded a 3.9% rise in housing starts in 2025, driven by a 58% jump in Montréal and record starts in Calgary and Edmonton, while Toronto fell 31% and Vancouver slipped 3%, CMHC said.
CMHC said the metro gains helped lift the national annual total for all areas in Canada to 259,028 housing starts in 2025, up 5.6% from 245,367 in 2024 and ranking as the fifth highest annual total on record. In centres with populations of 10,000 and over, actual housing starts rose 6% to 241,171 units, compared with 227,697 in 2024.
The year-over-year increase was driven by a second consecutive year of record rental housing starts, which made up just over half of all housing starts in Canada’s urban centres, CMHC said.
Monthly data showed increased activity late in the year, though the trend measure was little changed. The six-month trend in housing starts was flat (-0.1%) in December at 264,428 units. The trend measure is a six-month moving average of the seasonally adjusted annual rate, or SAAR, for total housing starts for all areas in Canada.
The total monthly SAAR of housing starts rose 11% in December to 282,439 units, up from 254,625 in November. CMHC said actual housing starts increased 25% year over year in centres with a population of 10,000 or greater, with 20,716 units recorded in December compared with 16,531 in December 2024. CMHC said this was the most actual housing starts for December on record, largely due to increases in Ontario, which recorded its highest monthly starts total of 2025.
Mathieu Laberge, chief economist and SVP, Housing Insights at CMHC, said housing starts in 2025 ended above 2024 levels and edged higher in December, though most construction momentum took place in the spring and summer.
"Since September, the trend in housing starts has consistently decreased."
He said economic uncertainty and the diminished viability of large residential towers encouraged a shift toward smaller-scale projects in 2025.
"As such, housing starts are beginning this year from a weaker position and market intelligence suggests slowing momentum for residential construction."
Laberge said geopolitical and trade uncertainty remains a consideration ahead of CMHC’s next outlook.
"These trends, along with geopolitical and trade uncertainty, remain top of mind as we expect to release an updated Housing Market Outlook in February."
Among Canada’s three largest cities, CMHC said all posted year-over-year increases in December. Toronto recorded a 151% increase, driven by higher multi-unit starts. Montréal posted a 123% increase, driven by higher starts across all dwelling types. Vancouver reported a +17% increase, also driven by multi-unit starts.
CMHC said the rural starts monthly SAAR estimate was 12,271 units.
