Housing Starts Are Up, But What Does That Mean for You?

Have you heard the latest housing market news? According to Canada Mortgage and Housing Corp. (CMHC), housing starts were up 3% in January 2025 compared to December, thanks to an increase in new apartment buildings and townhouses in Quebec and British Columbia. But before you start celebrating (or panicking), let’s break down what this actually means for you as a homebuyer, homeowner, or investor.

What’s Happening in the Market?

• More homes are being built – great news, right? More supply could help balance demand and stabilize prices.

• Montreal and Vancouver are booming with new construction, while Toronto is seeing a slowdown (down 41% compared to last year).

• Rural areas are still seeing new builds, with about 19,000 homes started in January.

On the surface, this sounds like good news for affordability—more housing should help ease some of the pressure on prices. But CMHC also issued a warning about economic uncertainty that could impact future construction.

How Could This Affect You?

👉 If you’re planning to buy a home…More housing options might mean more choices and possibly better prices, but the real challenge is how the economy plays out. If borrowing conditions improve, it could be a good time to move forward. However, if a potential trade war with the U.S. leads to job losses or slower economic growth, it could create uncertainty for buyers.

👉 If you’re renewing or refinancing…The good news is that interest rates may stay favorable if the economy slows down. If CMHC’s predictions hold true, the Bank of Canada may lower interest rates to support the economy, which could mean better mortgage renewal or refinancing opportunities for you.

👉 If you’re investing in real estate…There’s high demand for rentals, particularly in Montreal and Vancouver. However, investor interest in new condos is slowing, so if you’re thinking about buying a rental property, focus on demand-driven areas—places where people are actually looking to rent long-term.

The Bottom Line

The housing market is always changing, and while these numbers show early signs of strength, there’s a lot of uncertainty ahead. Whether you’re buying, selling, or investing, it’s important to stay informed and have a plan that makes sense for your financial goals.

If you’re not sure where you stand or need some guidance, let’s chat! I’m here to help you navigate the mortgage process with clarity and confidence.

📩 Let’s connect and find the best strategy for your home financing needs!