Full Breakdown
Major Shift in Canadian Housing Starts: Calgary, Vancouver, and Montreal Surpass Toronto
10/21/2025, 2:11:34 PM
Overview of Housing Start Trends in Canada
In a significant shift in the Canadian housing market, Calgary, Vancouver, and Montreal have overtaken Toronto in housing starts for the year 2025. According to data from the Canada Mortgage and Housing Corporation (CMHC), Toronto's housing starts have plummeted by 47%, primarily due to a dramatic decline in multi-unit demand. Despite this downturn, national housing starts remain robust, averaging 260,000 units annually, although ongoing population growth continues to exert pressure on housing supply.
Year-to-Date Housing Start Statistics
As of August 2025, Calgary leads the six largest urban areas in Canada with 18,632 housing starts, followed closely by Vancouver with 18,405 units and Montreal with 16,721 units. Toronto, once the dominant player in the housing market, now sits in fourth place with 16,451 units. The remaining cities in the top six include Edmonton with 14,701 units and Ottawa-Gatineau with 8,416 units.
On a percentage basis, Montreal has experienced the most significant increase in housing starts, up 47% year-to-date, while Toronto's multi-unit starts have decreased by 47%. This decline in Toronto is particularly striking, as multi-unit starts typically account for a substantial portion of the city's housing activity, often reaching as high as 90%.
Factors Contributing to the Shift
The decline in Toronto's housing starts can be attributed to a sharp drop in demand for new condominiums. In contrast, other cities like Calgary and Montreal have seen increases in multi-unit starts, with Calgary reporting a 30% rise. Various federal, provincial, and municipal initiatives, such as the 'Build Canada Homes' program and Ontario's Bill 17, aim to alleviate housing shortages by improving land access and providing incentives for modular construction.
Official Statements & Responses
Mayor Olivia Chow of Toronto emphasized the importance of recognizing the city's diverse communities and fostering a sense of belonging. She stated, "Celebrating each other's cultures is extremely important because it helps to foster a sense of belonging among people who have made Toronto home." This sentiment reflects the broader context of Toronto's housing challenges, as the city grapples with the implications of its declining housing starts.
Criticism & Opposition
Critics argue that the current measures to boost housing supply may not be sufficient to address the underlying issues contributing to Toronto's housing crisis. Jennifer van der Valk, senior vice-president of the Toronto Regional Board of Trade, noted that while the new enforcement measures targeting traffic congestion are a step forward, the city requires more comprehensive solutions to its housing and transportation challenges.
Conflicting Reports & Gaps
While the overall housing starts in Canada remain strong, there is a notable discrepancy in the performance of different cities. Some sources highlight the need for more aggressive policies to meet the demands of a growing population, while others suggest that the current initiatives are adequate. The lack of consensus on the effectiveness of these policies underscores the complexity of the housing market in Canada.
Conclusion
The shift in housing starts from Toronto to Calgary, Vancouver, and Montreal marks a pivotal moment in the Canadian housing landscape. As cities adapt to changing demands and implement new policies, the long-term implications for housing supply and urban development remain to be seen. The ongoing dialogue among city officials, developers, and community members will be crucial in shaping the future of housing in Canada.
