Canadian and Design Construction writer
The six-month trend in Canadian housing starts fell 3.5 per cent in January to 254,794 units, the Canada Mortgage and Housing Corporation reported Feb. 16.
The trend measure is a six-month moving average of the seasonally adjusted annual rate (SAAR) of total housing starts across all areas of the country.
Ontario’s homebuilding industry showed signs of life in the first month of the year, with housing starts finally improving after years of persistent decline in the face of cratering pre-construction sales.
Data released by the Canada Mortgage and Housing Corporation shows that Ontario saw a 12 per cent bump in new housing starts for January 2026 compared with the same period in 2025.
The data also shows there were 550 single-detached homes starting construction across the province — a sign that the ongoing oversupply of homes, coupled with low demand, has led to a slowdown in stand-alone homes.
The total monthly SAAR of housing starts for all areas in Canada declined 15 per cent to 238,049 units in January, compared with 280,668 units in December.
Actual housing starts in centres with populations of 10,000 or greater edged up one per cent year-over-year, with 16,088 units recorded in January, compared with 15,957 units in January 2025.
“While actual starts in January were flat, the six-month trend has decreased for the fourth consecutive month, which is in line with recent signs of slowing momentum in residential construction,” said Tania Bourassa-Ochoa, CMHC’s deputy chief economist. “We expect new construction to continue trending lower going forward as trade and geopolitical uncertainty, high construction costs, weaker demand, and rising inventories continue to constrain developer activity.
“As a result, near-term improvements in housing supply are unlikely, reflecting the on-the-ground sentiments we’ve heard from developers over the past several months.”
The rural starts monthly SAAR estimate was 20,485 units.
