Choose your settings

Choose your language
Economic News

Canada: May Housing Starts Remained Strong Despite Cooldown from April Surge

June 15, 2026
Kari Norman
Senior Economist

Highlights

  • The pace of housing starts in Canada eased in May to 261.4k (saar), while the 6-month moving average was essentially unchanged, at 258.0k. Table 1 summarizes key homebuilding indicators.

Comments

Seasonally adjusted housing starts eased 6% in May to a still-strong 261.4k units, following an unusually high print—278.4k—in April. As is typical, most of the month-to-month volatility came from the multi-unit segment. Single family starts improved to 41.7k after three consecutive declines (graph 1). While May’s headline figure is strong, the 6-month moving average shows a clearer picture of underlying momentum, with starts essentially unchanged at 258.0k units.

Year-to-date, housing starts in Nova Scotia, Alberta and Saskatchewan have pulled back markedly from their breakneck paces set in the first five months of 2025, but remain elevated relative to long-term norms. Regionally, Montreal and Vancouver continued to show strength in actual housing starts in May and year to date. Broadly softer homebuilding demand in Toronto has translated into easing in the new home price index over the past two years (graph 2).

Implications

Near-term policy measures—such as CMHC financing for purpose-built rentals and the GST/HST rebate—should continue to provide support to homebuilding, even as underlying drivers remain uncertain. Recent population declines, largely due to outflows of temporary foreign workers and international students, point to softer rental demand. As we recently reported External link. (and as subsequently confirmed by CMHC) External link., this easing in rental market demand should be partly offset by a pickup in household formation as a result of improved availability of affordable units.

Downside risks to housing activity remain elevated as financial conditions tighten. Higher longer-term bond yields are pushing up borrowing costs, constraining both buyers and developers. Weak presale condo activity in major markets also signals a potential slowdown in multi-unit construction once the current pipeline is completed. With oil prices External link. posing upside risks to inflation and uncertainty elevated ahead of the Canada–United States–Mexico Agreement (CUSMA) External link. joint review, we expect the Bank of Canada External link. to keep policy rates on hold through the end of 2026.

NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.