Canada’s housing market got a small boost in September, as the Canada Mortgage and Housing Corporation (CMHC) reported a five per cent increase in housing starts compared to August. On the surface, that sounds like good news. The seasonally adjusted annual rate rose to 223,808 units, up from 213,012 the previous month. But when you dig deeper, the question becomes: is this growth truly meaningful in the face of Canada’s housing affordability crisis?
Most of the growth came from urban centres, where starts jumped six per cent to just over 210,000 units. Multi-unit projects like condos and apartments which many Canadians rely on as the more affordable entry point into housing rose by the same six per cent, while single-detached homes climbed five per cent. Even rural areas saw modest progress, with an estimated 13,806 units.
Yet despite the uptick, the six-month moving average actually slipped to 243,759 units from 246,972 in August. That suggests September’s numbers might be more of a short-term bump than a long-term trend.
And here’s the crux of the issue: Canada needs far more than incremental gains. The demand for housing is outpacing supply at an alarming rate. Immigration, population growth, and years of underbuilding have all combined to create a shortage so severe that even a “good month” like this feels underwhelming.
Yes, it’s encouraging to see a pulse in the numbers, but Canadians struggling to find affordable homes won’t feel relief any time soon. Until housing starts consistently outpace the growing demand, these kinds of reports will be less cause for celebration and more a reminder of how far we still have to go.
