Regional Shift in Housing Starts with Quebec and the Prairies Leading Growth

Residential construction is undergoing notable regional changes, with the latest data from the Canada Mortgage and Housing Corporation (CMHC) showing a shift away from major urban centres like Toronto and Montreal towards the Prairie provinces and secondary markets in Quebec. While certain urban markets report sharp slowdowns, others are experiencing strong year-over-year gains.

Housing Starts Increase 14% Nationally

Between June 2024 and June 2025, total housing starts across Canada rose from 20,509 to 23,282 units, a 14 percent increase. The overall growth was driven primarily by multi-unit projects, which jumped 18 percent nationally, offsetting a slight 2 percent decline in single-detached starts.

The data highlights stark regional contrasts. Some provinces, including Saskatchewan and Alberta, saw major surges, while others, like Ontario and Nova Scotia, experienced significant declines in specific housing types.

Quebec Leads National Growth

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Quebec recorded one of the strongest increases in total housing starts, rising from 4,261 to 4,988 units (up 17 percent). Multi-unit projects were the main driver, growing 21 percent to 4,481 units. Single-detached starts also rose by 17 percent, signaling balanced growth across the province.

Montreal itself posted 2,729 total starts in 2025, down 8 percent from the previous year, but surrounding regions such as Gatineau and Quebec City saw increases of 13 percent and 29 percent, respectively. 

This suggests suburban and secondary markets are fuelling much of Quebec’s growth. One example of the growing housing market in Quebec is the province’s recently announced partnership with Desjardins to build 1,000 new affordable housing units.

Prairie Provinces Post Strong Gains

The Prairie provinces collectively increased total housing starts by 27 percent, climbing from 4,885 to 6,198 units. Alberta came out on top, with total starts soaring 41 percent year-over-year to 5,363 units, driven primarily by multi-unit construction, which jumped 78 percent to 3,934 units.

Saskatchewan also posted notable growth at 6 percent, largely from gains in multi-unit projects. Calgary alone accounted for 2,300 starts, up 17 percent year-over-year, while Edmonton surged 82 percent to 2,689 units, the strongest growth of any major Canadian city.

Toronto Shows a Major Decline

In contrast, Canada’s largest market saw a sharp decline. Toronto’s total housing starts fell 40 percent, dropping from 2,847 to 1,701 units. This marks the city’s lowest start volume since the mid-2010s and reflects both rising construction costs and declining investor activity.

Atlantic Canada Mixed

The Atlantic provinces experienced varied results. Newfoundland and Labrador saw an 8 percent decline in total starts, while Nova Scotia dropped 24 percent.

New Brunswick, however, recorded a 35 percent increase, rising from 482 to 653 units, driven by a 48 percent surge in multi-unit housing.

Shifts Reflect Changing Affordability and Migration Patterns

The uneven growth reflects broader affordability dynamics. Families and developers are moving away from expensive markets like Toronto towards smaller cities and provinces where land is cheaper and approvals are faster. 

This shift is particularly pronounced in Alberta and Quebec, which are attracting interprovincial migrants at the fastest rate in over a decade.

If these trends continue, the Prairie provinces and Quebec could play a more significant role in Canada’s housing supply, reshaping the national construction landscape.

Images from Depositphotos