News Summary

Toronto, long considered the dominant force in Canada’s housing market, has experienced a surprising decline in housing starts in 2025. Traditionally leading in multi-family market developments, Toronto’s housing starts have fallen dramatically, with a 47% decrease compared to the previous year. This shift has positioned Calgary as the new leader among Canada’s major cities, recording 18,632 housing starts from January to August 2025. Montreal, Ottawa-Gatineau, and Edmonton also reported significant increases in housing starts, while Vancouver remained stagnant. The federal government has responded with initiatives like ‘Build Canada Homes’ to address the housing shortage, while provincial measures are aimed at reducing regulations and providing tax incentives. However, economic challenges such as high prices and trade uncertainties with the U.S. are impacting demand, especially in Ontario. Meanwhile, Alberta benefits from its unrestricted energy trade with the U.S., fueling its housing sector growth.