MNI BRIEF: Home Starts Weaken As Canada Seeks To Double Pace

Canadian housing starts are weakening into this year even with Prime Minister Mark Carney pushing to double the pace amid voter anger over affordability, the federal housing agency said Friday, citing builders deterred by high costs and geopolitical turmoil.

"In 2025, economic uncertainty and the diminished viability of large residential towers encouraged a shift towards smaller-scale projects," Canada Mortgage and Housing Corp chief economist Mathieu Laberge said in a report. "Housing starts are beginning this year from a weaker position and market intelligence suggests slowing momentum." (See: MNI INTERVIEW: Canada Needs Broad Response To US Oil Threat)

The six-month moving average of starts, which the agency sees as a better indicator of the trend, has slowed since September and declined 0.1% in December. Unadjusted figures showed starts rose 11% in the last month of 2025 for a 5.6% yearly increase.