National housing supply made strides in 2025 amid weak demand, condo struggles: CMHC

A roofer is seen working on a new housing development in Salaberry-de-Valleyfield, Que., southwest of Montreal on Wednesday, Oct. 22, 2025. THE CANADIAN PRESS/Christinne Muschi

Canada’s housing agency says the country made “meaningful” supply gains last year thanks to record rental construction and more “missing middle” class housing, however short-term imbalances remain for several markets.

Canada Mortgage and Housing Corp.’s spring housing supply report says construction rose six per cent year-over-year in 2025 to 259,000 units, with activity exceeding the 10-year average across most major markets.

The report says Toronto was an exception, as housing starts fell below the historical average and reached the lowest per-capita level among Canada’s seven largest regions.

While the agency says housing starts and completions were strong in 2025, that new supply was met with subdued demand, slower population growth and persistent cost pressures facing potential buyers.

Canada’s housing system also still faces pressures that threaten future supply and long‑term affordability, as condominium presales collapsed and unsold inventory surged.

Last year, CMHC released projections which said between 430,000 and 480,000 new housing units are needed per year across the ownership and rental markets by 2035 to restore affordability levels last seen in 2019, based on projected demand.

This report by The Canadian Press was first published March 11, 2026.

Sammy Hudes, The Canadian Press