When we talk about the health of Canada’s housing market, one of the most important indicators you’ll hear about is housing starts. The term might sound a bit technical, but in simple terms, housing starts refer to the number of new residential construction projects that begin within a specific period, usually measured monthly. These figures are tracked closely by the Canada Mortgage and Housing Corporation (CMHC), and they provide valuable insights into the state of housing supply across the country. A housing start is officially counted once construction on a foundation begins, not when a permit is issued or when a builder announces a project. This makes housing starts one of the most reliable indicators of actual building activity on the ground.
Housing starts cover all types of housing construction as single-family homes, semi-detached properties, townhouses, condominiums, and apartment buildings. When you see national headlines about housing starts rising or falling, what you are really looking at is the pulse of how much new housing is entering the market. Because real estate is a critical part of the Canadian economy, these numbers are carefully watched by policymakers, banks, investors, and of course, REALTORS®. For anyone in the industry, understanding the trends behind housing starts can provide a competitive edge.
So why do housing starts matter so much? At their core, they are about supply. When housing starts increase, it means more homes will eventually be available for purchase or rent. This can help ease pressure in markets where demand is high and listings are scarce. On the flip side, when housing starts slow down, it signals that fewer new homes will be added in the coming years, which can contribute to tighter inventory and, potentially, upward pressure on prices. In other words, housing starts help us understand the future direction of supply long before homes hit the MLS®. When we think about this fact, we can’t help but wonder, what will happen to Canada’s real estate market in 2027-2029, since housing stats have been lower over the past few years.
For REALTORS®, studying housing starts is about more than just numbers, it’s about recognizing opportunities and anticipating shifts in client needs. For example, if housing starts in a given city show a surge in purpose-built rental construction, REALTORS® working with investors may be able to guide clients toward opportunities in emerging rental markets. If a region is seeing a slowdown in condominium starts, that may signal future challenges for buyers seeking affordable ownership options, or it may create chances for REALTORS® to advise developers on shifting consumer preferences.
Housing starts also vary greatly across regions, and this regional perspective is where REALTORS® can really benefit. National figures provide a useful snapshot, but it’s the local data that matters most. CMHC publishes housing start data not just at the national and provincial levels but also for major cities and even smaller centres. By paying attention to these numbers, REALTORS® can gain insights into where new supply is concentrated, which neighbourhoods may see significant growth, and where infrastructure improvements might follow. This is especially relevant for REALTORS® who work with buyers looking for up-and-coming areas, as well as those advising investors who want to align with long-term growth patterns.
Another reason to pay attention to housing starts is that they act as an economic barometer. Construction activity creates jobs, stimulates local businesses, and influences housing affordability. When housing starts are strong, it suggests builders are confident in demand and the overall economy. When they drop, it may indicate caution among developers due to higher interest rates, rising construction costs, or shifts in government policy. REALTORS® who understand these dynamics can provide a deeper level of insight to their clients, positioning themselves as trusted advisors rather than simply transaction facilitators.
It’s also worth noting that not all housing starts are created equal. A spike in single-detached homes in suburban areas will have a very different impact on the market than a surge in downtown high-rise rentals. For REALTORS®, distinguishing between these types of construction is crucial. Families searching for detached homes will not benefit from an increase in condominium starts, while investors looking for rental income will pay close attention to purpose-built rental data. By studying the type and location of housing starts, REALTORS® can align their strategies with the realities of supply.
So how can REALTORS® make use of housing start data in their day-to-day business? First, incorporate CMHC’s monthly housing start reports into your market updates. Sharing these insights in client newsletters, blogs, or social media can establish you as a knowledgeable professional who goes beyond the usual sales stats. Second, use housing start trends to advise buyers and sellers. For buyers, knowing that a large wave of new condos is set to hit the market in two years can affect their long-term strategy. For sellers, understanding low levels of new construction can highlight the value of listing now when inventory is tight. Finally, REALTORS® can use housing start trends when building relationships with developers, municipalities, and investors by demonstrating a keen awareness of how supply is shaping the market.
In the end, housing starts are about more than just construction. They are about foresight, strategy, and opportunity. For REALTORS® in Canada, paying attention to these numbers can mean being better prepared, better informed, and ultimately better equipped to serve clients. Whether you’re working with first-time buyers, seasoned investors, or families searching for their forever home, understanding the story behind housing starts will help you guide them with confidence.
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To learn more about Housing Starts, Visit CMHC
