| Consensus | Consensus Range | Actual | Previous | Revised | |
| Annual Rate | 255,000 | 250,000 to 265,000 | 282,439 | 254,058 | 254,625 |
Highlights
Canadian housing starts rose 10.9 percent to a seasonally adjusted annual rate of 282,439 in December from 254,625 in November, topping expectations in an Econoday survay that had the highest estimate at 265,000.
The six-month trend was little changed in december at 264,428, down 0.1 percent from November.
Housing starts reached 259,028 in 2025, the fifth annual total on record, up 5.6 percent from 2024.
Canada Mortgage and Housing Corporation tempered the increase, pointing out that"most of the momentum in housing construction occurred in the Spring and Summer". By contrast, the trend has consistently decreased since September, leading to a"weaker" start to 2026. In fact,"market intelligence suggests slowing momentum for residential construction. These trends, along with geopolitical and trade uncertainty, remain top of mind," the report said.
Actual starts in centres with a population of 10,000 or more soared 25.3 percent to 20,716 units in December from a year earlier, the highest level of starts for the month of December.
Definition
Released by the Canada Mortgage and Housing Corporation (CMHC), the monthly housing starts data capture the annualised number of new residential buildings that began construction during the previous month. Statistics are provided for urban and rural areas, the former with a population of at least 10,000. CMHC estimates the level of starts in centres with a population of less than 10,000 for each of the three months of the quarter, at the beginning of each quarter. During the last month of the quarter, a survey of these centres is conducted and the estimate revised.
Description
Housing starts are a leading indicator of economic health because building construction produces a wide-reaching ripple effect. This narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. Home builders usually don't start a house unless they are fairly confident it will sell upon or before its completion. Changes in the rate of housing starts tell us a lot about demand for homes and the outlook for the construction industry. Furthermore, each time a new home is started, construction employment rises, and income will be pumped back into the economy.
Once the home is sold, it generates revenues for the home builder and a myriad of consumption opportunities for the buyer. Refrigerators, washers and dryers, furniture, and landscaping are just a few things new home buyers might spend money on, so the economic"ripple effect" can be substantial. Since the economic backdrop is the most pervasive influence on financial markets, housing starts have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the housing starts data carry valuable clues for the stocks of home builders, mortgage lenders, and home furnishings companies. Commodity prices such as lumber are also very sensitive to housing industry trends.