Ottawa: Canada’s housing sector demonstrated a significant resurgence in September 2025, as new housing starts rose by 14% compared to the previous month, signaling renewed momentum in construction activity. According to the Canada Mortgage and Housing Corporation (CMHC), the seasonally adjusted annualized rate (SAAR) of housing starts climbed to 279,234 units, up from a revised 244,543 units in August. This jump surpassed economists’ expectations, who had forecasted a rise to around 255,000 units, reflecting a more robust-than-anticipated recovery in the sector.
The sharp increase follows a 16% decline in August, underscoring the inherent volatility of Canada’s housing market. Analysts attribute the rebound primarily to heightened construction in multi-unit urban housing projects. Growing urban populations, combined with a pressing demand for affordable housing, have pushed developers to accelerate new projects. Federal government initiatives, including a $6 billion fund designed to boost housing construction and renovation, have also contributed to supporting the sector’s growth.
Despite the strong performance in housing starts, the broader Canadian housing market remains cautious. Home sales in September declined by 1.7% from August, ending a growth streak that had continued since April. Major markets such as Greater Vancouver, Calgary, Edmonton, Ottawa, and Montreal experienced falling sales, though some regions, including the Greater Toronto Area and Winnipeg, reported modest increases. These mixed trends highlight the uneven recovery across different provinces and metropolitan areas.
Looking forward, the sustainability of this rebound will depend on multiple factors, including interest rates, housing affordability, and government policy measures. The Bank of Canada’s recent reduction of its benchmark interest rate to a three-year low of 2.5% may provide some relief for buyers and developers alike. However, structural challenges, particularly in terms of affordability and limited housing supply, continue to pose constraints for the market.
In conclusion, Canada’s housing starts in September 2025 reveal a resilient construction sector rebounding from earlier setbacks. Yet, while short-term gains offer optimism, long-term market stability will require careful monitoring of economic indicators, policy interventions, and regional market dynamics. The housing landscape remains complex, balancing recovery with persistent structural pressures.