Canada falls short on housing construction promises as starts drop to 259,028 units

Despite pledges to double housing construction to 500,000 homes annually, Canada managed only 259,028 housing starts last year, according to data from the Canadian Mortgage and Housing Corporation. Toronto saw a sharp 31% decline in starts compared to 2024, while other major Ontario cities experienced a 13% drop. With CMHC estimating that 430,000 to 480,000 units per year are needed to address demand, the shortfall remains significant. High development charges – exceeding $130,000 per apartment in Toronto and $180,000 per home in some municipalities – continue to strain affordability. Meanwhile, Metro Vancouver home sales hit a 20-year low, and renters face mounting pressure as average two-bedroom rents climbed 5.1%.

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