Canada’s housing starts increased by 2% in 2024, reaching 245,120 units across all areas, according to data released by the Canada Mortgage and Housing Corporation. This modest growth, while marking the third-highest year on record, still falls significantly short of the levels needed to address the country’s housing affordability crisis.
In urban centers with populations over 10,000, starts rose to 227,697 units, up from 223,513 in 2023. Rural areas contributed an estimated 17,423 starts. The increase was primarily driven by historically high rental construction and increased activity in Alberta, Québec, and the Atlantic provinces.
However, the picture was mixed across Canada’s six largest Census Metropolitan Areas, which collectively saw a 3% year-over-year decrease. Vancouver, Toronto, and Ottawa experienced declines in multi-unit starts due to weak pre-construction condominium sales. In contrast, Calgary, Edmonton, and Montréal saw higher activity, particularly in the multi-unit segment, buoyed by strong rental starts.
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The monthly data for December 2024 showed a 13% decrease in the seasonally adjusted annual rate of housing starts, dropping to 231,468 units from November’s 267,140. The six-month trend remained relatively flat at 242,637 units.
CMHC’s Chief Economist, Mathieu Laberge, emphasized that despite the annual increase, Canada still needs significantly higher supply growth to restore affordability in urban centers. “Last Spring, we estimated Canada could build up to 400,000 new housing units annually, based on current resources devoted to residential construction,” Laberge stated.
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