Canadian Housing Starts Slid to 229,074 in July, With Vancouver Down 42%

Canadian housing starts slid 5% in July to a 229,074 annual pace, with Vancouver down 42% year on year and Toronto down 10%, the CMHC reported.

Canada Mortgage and Housing Corporation reported on 18 August 2026 that the seasonally adjusted annual rate of housing starts fell to 229,074 units in July, 5% below June's 240,773. Stripped of the annualising, builders broke ground on 18,834 units in centres of 10,000 people or more — 19% fewer than the 23,155 started in July 2025.

One city carries most of the decline

The national number hides a wide spread. Vancouver posted a 42% year-over-year fall, with both multi-unit and single-detached starts lower. Toronto was down 10%, driven by the multi-unit segment. Montreal went the other way, up 3%, also on multi-unit strength.

CMHC deputy chief economist Tania Bourassa-Ochoa framed it plainly: "July's results show housing starts are continuing to moderate... fewer new projects are being started in many markets, notably in Vancouver, Calgary and Toronto." She added that the volume of homes already under construction will keep completions flowing for some time.

The pipeline is still draining

That last point is the one worth holding onto. Completions reached 19,773 units in July, 8.1% above June, so homes are still arriving on the market even as new sites go quiet. Behind them sit 141,480 units that hold approved permits but have not been started — 3% more than in June, and a reservoir that could refill quickly if financing costs move.

The six-month moving average of the annual rate stood at 247,377, down 0.5% from June. That gentler figure is the better guide to trend than any single month; the starts series is volatile enough that one reading rarely establishes a turn.

Where this lands for owners and investors

Glopra's current Canada snapshot shows an average of $4,320 per square metre with a 5.72% gross rental yield and prices 3.6% lower over the past twelve months. Applying the standardised non-resident rental tax of 20.72% used in Glopra's methodology leaves a net yield near 4.5% before costs — respectable against European averages, but earned in a market where the capital line is currently negative.

The construction slowdown cuts both ways over different horizons. Fewer starts in 2026 mean fewer completions in 2028, which tightens supply into a country that has spent years short of housing. In the near term it is a straightforward signal that developers do not believe today's prices support today's build costs — a judgement that carries more weight than most sentiment surveys, because it is made with capital. Bubble risk on Canada sits at 45 out of 100 in Glopra's scoring, in the moderate band, with the largest uncertainty being how quickly those 141,480 approved-but-unstarted units come off the shelf.

Sources: Canada Mortgage and Housing Corporation, housing starts July 2026, 18 Aug 2026 https://www.cmhc-schl.gc.ca/media-newsroom/news-releases/2026/housing-starts-construction-data-july-2026; BNN Bloomberg, 18 Aug 2026 https://www.bnnbloomberg.ca/business/real-estate/2026/08/18/cmhc-reports-annual-pace-of-housing-starts-slowed-in-july/

Market data: Canada