A recent CIBC report raises concerns about the Canadian housing market, suggesting that overstated housing start figures may be masking underlying economic vulnerabilities. While the Canada Mortgage and Housing Corp. reported a 5.6% increase in housing starts for 2025, CIBC deputy chief economist Benjamin Tal argues that these numbers are potentially misleading and don’t reflect the true pace of construction.
Tal emphasizes that falling property values could impact homeowners’ wealth perception, leading to increased savings rather than spending. While lower prices may offer opportunities for first-time buyers in the GTA, Tal cautions that it’s not a sustainable solution for long-term affordability. He urges all levels of government to address the underlying costs of homeownership to stimulate supply across Canada. For a deeper dive into CIBC’s analysis and its implications for the GTA market, read the full article on BNN Bloomberg.
[Link to original article: https://www.bnnbloomberg.ca/business/real-estate/2026/02/18/cibc-warns-overstated-housing-starts-mask-economic-weakness-in-canada/]
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