Toronto housing starts experienced a significant decline in July, with a year-over-year drop of 69% and a year-to-date drop of 49% compared to the previous period.
The housing market in Canada has shown a steady growth in July 2025, according to the latest data released by the Canada Mortgage and Housing Corporation (CMHC). The total monthly seasonally adjusted annual rate (SAAR) of housing starts for July 2025 was 294,085 units, a 4% increase from June.
TD economist Rishi Sondhi commented that housing starts in July 2025 hit the highest level since September 2022. The increase was largely due to increased multi-unit starts in the Prairie Provinces and Québec, as per CMHC's Deputy Chief Economist Tania Bourassa-Ochoa.
Edmonton posted a 36% annual increase in starts, while Montreal saw a 212% year-over-year increase, driven by significantly higher multi-unit starts. Vancouver's housing starts rose 24% year over year, but vacancies are climbing and developers are likely to pull back. Calgary recorded a 22% year-to-date increase in starts, despite falling 24% year over year for the month of July.
Toronto continued to struggle in July, with starts falling 69% year over year and 49% year to date, driven by a decrease in multi-unit and single-detached starts. Despite this, the year-over-year housing starts in July 2025 were up 4% from 22,610 units in July 2024 to 23,464 units. Year-to-date, housing starts were also up 4% at 137,875 units.
Rishi Sondhi attributes the growth in housing starts to the rental market, where gains have likely been supported by population growth and government financing programs. Nicole Lechter, senior real estate analyst with national accounting firm RSM Canada, agrees, stating that Alberta's impressive numbers, in part, are due to a lack of rent control.
However, Sondhi also notes that economic uncertainty and slowed immigration are preventing new housing from being proposed and pre-sold. He predicts some cooling taking place in 2026, due to slowing population growth, dropping rents in several jurisdictions, and subdued building activity in the ownership market.
Indigenous partnerships could help fill the gaps in Vancouver's housing market, according to Lechter. Rents in some major markets are on the decline, as per Sondhi, which could further impact the housing market in the coming months.
Tania Bourassa-Ochoa stated that the current growth in housing starts was initiated some time ago, reflecting previous market conditions and builder sentiment. The search results do not contain information about which regions in Canada experienced a significant increase in housing starts in July 2025 or the reasons for this increase beyond those mentioned above.
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