Canada housing starts in May 2026 held near flat

Canada housing starts May 2026 data shows a flat trend and a 5.2% year-over-year drop, with CMHC flagging weaker supply momentum ahead

Canada’s six-month housing starts trend edged up just 0.5 per cent in May 2026 to 258,010 units, according to the Canada Mortgage and Housing Corporation (CMHC).

The trend measure is a six-month moving average of the seasonally adjusted annual rate (SAAR) for all areas in Canada.

Actual monthly housing starts fell 5.2 per cent year-over-year in centres with a population of 10,000 or more — 22,633 units in May, down from 23,879 units in May 2025.

The monthly SAAR dropped too. Total starts across all areas decreased 6 per cent in May to 261,377 units, compared to 278,380 in April.

That monthly dip fits a pattern brokers should track — Canada’s housing starts have been sliding since early 2026, with CMHC flagging fading construction momentum in earlier releases this year.

What the May figures show by region

The year-to-date total reached 93,644 units — up 3 per cent from the same period in 2025. Higher starts in British Columbia and Ontario drove that gain, outweighing year-over-year decreases in the Prairies.

Results varied sharply across Canada’s three largest markets:

Those gaps reflect Canada’s sharpest regional housing market split in years — a divergence now showing up directly in new supply numbers.

Year-over-year actual housing starts — May 2026, three biggest CMAs

Montréal bucked the national trend with an 18% gain, while Toronto and Vancouver both recorded declines driven by lower multi-unit starts.

Source: CMHC Starts and Completions Survey, June 15, 2026

Construction pipeline and forward indicators

Some construction indicators moved in a positive direction in May:

One forward-looking indicator moved the wrong way. The number of units with approved building permits but not yet started fell 2.4 per cent month-over-month to 138,842 units.

Aled ab Iorwerth, Deputy Chief Economist at CMHC, addressed the mixed picture directly.

“May’s data showed mixed results. Year-to-date housing starts are slightly up from last year, and the monthly starts trend was basically flat, while units under construction and completions increased.

“Overall, these results suggest that construction activity is uneven and taken together with the decline of approved units not yet started and market intelligence point to weaker momentum for future supply,” he said.

Construction pipeline snapshot — May 2026, centres 50,000+

Completions and units under construction both rose in May, but a drop in approved-but-unstarted units signals weaker supply momentum ahead.

Why Canada housing starts matter for mortgage brokers

Housing starts are a direct signal of where the lending environment is heading.

CMHC’s Starts and Completions Survey tracks homes for which construction has actually begun, not a survey of intentions.

A housing start is counted when 100 per cent of the concrete has been poured for the footing around the structure. CMHC considers this the most reliable indicator that a project will be completed.

When the pipeline of approved-but-unstarted units shrinks, as it did in May 2026, future supply tightens and price pressure tends to persist.

CMHC projects Canada needs 430,000 to 480,000 new homes annually by 2035 to restore affordability — roughly double the current construction pace. May’s Canada housing starts data does little to close that gap.

CMHC will release June 2026 housing starts data on July 16 at 8:15 AM ET.

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