Average of new homes being built across Canada steadily increases while Ontario lags behind

While the number of new homes that broke ground in Canada peaked last month, Ontario continues to see an overall decrease in construction. 

A report by the Canada Housing and Mortgage Corporation (CMHC) highlighted that the seasonally adjusted annual rate (SAAR) for total housing starts (the number of homes that have begun construction) saw a boost over the last few months.

In September of this year, the current national housing start average was hovering around 223,391, while numbers from last month showed 240,761 units, highlighting an eight per cent increase. 

In major urban centres with a population of 10,000 or greater, 188,567 housing starts were logged from January to October 2024. 

However, compared to 2023’s 187,722, which was quantified over the same period,  the difference is marginal, while 2023 and 2024 had new housing projects reach almost 200,000, this year only saw an increase of 845 compared to last. 

As indicated by CMHC’s data, the result is an asymmetrical average, as each Canadian province is seeing growth in some areas but boom/bust behavior in major population centres — with annual averages taking an overall hit and monthly averages seeing some spikes. 

“We continue to see higher activity in the Prairie provinces, Québec and the Atlantic provinces, while Ontario and British Columbia have seen declines in all housing types. The increases in the monthly SAAR in Toronto and Vancouver are a promising sign for Ontario and British Columbia,” said Bob Dugan, Chief Economist for the CMHC alongside the report. 

However, despite municipalities seeing some growth, Dugan did indicate that this isn’t enough to give new Canadian homeowners a boost, as he stated “Despite these results, we remain well below what is required to restore affordability in Canada’s urban centres.“

For more information on the CMHC’s report, visit their official website.