Pace of housing starts drops to lowest since 2020 despite supply shortage

The pace of housing starts slowed in January to its lowest level since September 2020, according to data from Canada’s national housing agency.

Seasonally adjusted annualized figures from the Canada Mortgage and Housing Corporation released Feb. 15 show starts declined 13 per cent to 215,365 units compared to December’s pace of 248,296 units. The six-month trend in starts also declined for the month, off four per cent from December.

Of the country’s three biggest markets, only Montreal saw starts pick up in January, increasing 36 per cent. Housing starts in Toronto were down 52 per cent and in Vancouver they were down 14 per cent.

The decline comes amid growing concern that a chronic housing supply shortage has driven up real estate prices and rents to unaffordable levels in recent years.