Canadian housing starts rose 5.6% in 2025 as December beats expectations

By Fergal Smith

TORONTO, Jan 16 (Reuters) - Canadian housing starts rose 5.6% in 2025 to 259,028 units as starts increased more than expected in December, data from the national housing agency showed on Friday.

The annual level of starts was the fifth highest on record, the Canada Mortgage and Housing Corporation (CMHC) said.

In December, the seasonally adjusted annualized rate increased 11% to 282,439 units from a revised 254,625 units in November. Economists had expected starts to rise to 260,000.

The six-month trend was less upbeat, showing a December decline of 0.1%.

"While housing starts in 2025 finished ahead of 2024 and inched up in December, most of the momentum in housing construction occurred in the spring and summer, CMHC's chief economist Mathieu Laberge said in a statement. "Since September, the trend in housing starts has consistently decreased."

Canadian Prime Minister Mark Carney has pledged to improve affordability and reduce homelessness while increasing home construction, while the Bank of Canada has lowered its benchmark interest rate to a three-year low of 2.25% to support the economy.