Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeReal EstateSlowdown in housing construction deepens as builders pull backThe data suggests an industry that is completing projects faster than they’re launching new onesLast updated 1 week ago You can save this article by registering for free here. Or sign-in if you have an account.New home construction in Milton, Ont. on July 9. Photo by Peter Power/Postmedia filesHousing construction in Canada continued to thin in June — further evidence that homebuilders are pulling back amid weak demand, rising costs and a surplus of unsold homes.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorCanada Mortgage and Housing Corp. (CMHC) said the six-month trend in housing starts fell 2.8 per cent last month to a seasonally adjusted annual rate of 248,123 units. At the same time, the monthly annualized pace slipped six per cent to 238,971 units, while actual housing starts in centres with populations of 10,000 or more fell 13 per cent year over year.The latest figures support economists’ expectations that residential construction will remain subdued through the rest of the year despite modest improvements in home sales and recent government efforts to stimulate new-home demand.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try again“There is little doubt that the slowdown reflects rising uncertainty, higher development costs, weaker demand and more unsold homes,” Kevin Hughes, CMHC deputy chief economist said in the release.According to Hughes, the Crown corporation expects housing starts in 2026 to finish below last year’s levels.The broader construction pipeline also appears to be slowing.While the number of homes under construction in centres with populations of 50,000 or more was essentially unchanged from May, increasing by just 0.2 per cent to 375,469 units in June, the number of approved units awaiting construction slid 1.1 per cent to 137,324.Completions climbed 8.4 per cent to 18,298 units as projects already underway continued to reach the finish line.Taken together, the data suggests an industry that is completing projects faster than they’re launching new ones.Robert Kavcic, senior economist at BMO Capital Markets, said the weakness is particularly pronounced in the ownership market. Housing starts for condos and other homes intended for ownership across Canada’s largest metropolitan areas have fallen to their lowest levels since the 2009 recession — and before that, the recession of the mid-1990s — “while rental starts continue to run near record highs. Most regions of the country saw starts pull back in June,” he said.Among three of the nation’s largest metropolitan areas, the results are mixed. Montreal posted a 10 per cent annual increase in housing starts, driven by multi-unit construction. Toronto recorded a 25 per cent increase, also led by multi-unit residential buildings. Starts in Vancouver, however, tumbled 35 per cent as both single detached and multi-unit construction weakened.Economists say there’s little reason for a turnaround.TD Economics economist Marc Ercolao said “weak population growth, elevated levels of unsold inventories, climbing rental vacancy rates and past weakness in pre-construction sales” continue to weigh on builders. While Ontario’s recently expanded HST rebate for new homes should eventually support demand, he said the lag between pre-sales and construction means any meaningful gains in housings starts is more likely to emerge in 2027 or 2028.Stephen Brown, chief North America economist at Capital Economics, echoed that view stating the resale market has gradually improved but developers remain under pressure. Even government measures to convert unsold condos into affordable housing are expected to provide only moderate relief, he said, leaving housing starts to trend lower over the coming year. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.