Canada Mortgage and Housing Corp. reported encouraging news in September 2026, with the annual pace of housing starts climbing 3% compared to August, reaching a seasonally adjusted rate of 248,896 units. However, the headline figure masks a troubling underlying trend for the Greater Toronto Area and broader Canadian market.<\/p>\n
Monthly housing starts in communities with populations exceeding 10,000 actually fell 11% year-over-year<\/strong>, dropping to 19,984 units in September 2026 from 22,375 in September 2025. This decline underscores persistent challenges in ramping up construction where it matters most\u2014in urban and suburban centers where housing demand remains acute.<\/p>\n Aled ab Iorwerth, CMHC’s deputy chief economist, warned that Canada continues facing a long-term housing supply gap<\/strong>. Without sustained increases in construction activity, recent affordability improvements achieved since 2023 risk stalling. For GTA residents and investors, this signals that housing cost pressures may resurface unless the industry substantially accelerates production.<\/p>\n The six-month moving average of seasonally adjusted starts edged up just 0.6% to 250,411 units, suggesting momentum remains fragile. Rural starts were estimated at 18,094 units.<\/p>\n