Canada’s Housing Starts Decline in February, Despite Six-Month Trend Growth
Canada’s housing market showed mixed signals in February 2025, with the six-month trend in housing starts rising 1.1 percent to 239,382 units, according to the Canada Mortgage and Housing Corporation.
This trend measure, which smooths out monthly fluctuations, indicates a steady increase in activity. However, the seasonally adjusted annual rate of housing starts for February declined by 4 percent to 229,030 units, down from January’s 239,322 units.
Year-over-year figures painted a more concerning picture. Actual housing starts in urban centres with populations of 10,000 or greater dropped by 17 percent to 14,459 units in February, compared to 17,454 units during the same month in 2024. Among Canada’s largest cities, Montreal stood out with a 6 percent year-over-year increase in starts, driven by gains in both multi-unit and single-detached homes. In contrast, Vancouver and Toronto recorded steep declines of 48 percent and 68 percent respectively, primarily due to reductions in multi-unit and single-detached projects.
Rural housing starts were estimated at an annualized rate of 19,246 units for February. In urban centres with populations exceeding 10,000, the monthly seasonally adjusted annual rate fell by 5 percent to 209,784 units compared to January.
The data reflects ongoing challenges in the Canadian housing market. While Montreal showed resilience, significant declines in Vancouver and Toronto highlight regional disparities. The overall decrease in multi-unit construction may signal a broader slowdown tied to reduced investor demand and affordability concerns.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
