Rental construction in Canada just hit its highest level in years, while condo construction fell to some of its lowest, according to CMHC. Canada's 2025 housing starts rose 6% annually, "driven by record rental apartment construction," per CMHC's Spring 2026 Housing Supply Report, even as the report describes condo presales as having "collapsed" nationally.
That shift sits alongside a separate, recent slowdown. In July 2026, housing starts fell 5% month-over-month to 229,074 units, with multi-unit starts down 21% year-over-year. The pace of building has cooled this summer, even as the mix tilts toward rentals.
Several cities are leading the rental surge. Calgary, Edmonton, Ottawa, Halifax, and Montreal all posted record-high rental starts in 2025, and Toronto hit its second-highest rental level ever.
The ownership side tells a starker story. Montreal's condo starts fell to record lows, with rentals making up over 80% of all starts there. Toronto's rental starts exceeded condo starts for the first time this century, a genuine milestone in Canada's largest market. Vancouver's overall starts fell 42% year-over-year in July, compounding an already weak ownership pipeline.
Buyer Takeaways
- Renting? Take advantage of falling rents and incentives like free rent while rental supply stays elevated.
- Planning to buy a condo, especially in Toronto or Montreal? Expect a thinner, slower-replenishing pipeline going forward.
- Get pre-approved sooner rather than later; CMHC itself warns today's slowdown could tighten ownership supply later.
Seller Takeaways
- Selling a condo or single-family home? A shrinking new-construction pipeline could work in your favour over time.
- Get a valuation that reflects your local construction trend, not just the national mix shift.
- Own a rental property? Rising supply and falling rents may affect near-term income expectations.
Frequently Asked Questions
Where can I find purpose-built rental apartments in Canada right now?
Try sites like Rentals.ca or developers advertising new buildings directly. There's more inventory than in years, thanks to record rental starts in Calgary, Edmonton, Ottawa, Halifax, and Montreal. Rents have fallen nationally for 12 straight months, with landlords offering free rent to fill units.
Why is rent going down in Canada right now?
Rental supply is rising faster than demand, giving tenants leverage. Average asking rent has dropped for 12 consecutive months, and newer buildings are seeing higher vacancy than older stock, prompting free rent and other incentives. The old 3% vacancy benchmark varies now: Vancouver near 3%, most markets closer to 4%, Alberta closer to 5%.
Why are condo starts falling?
Builders are pulling back on softer buyer demand and tighter financing, not a lack of land or permits. CMHC describes condo presales as having "collapsed," pushing developers to convert planned projects into rentals or delay them. Montreal's condo starts hit record lows; Toronto's rentals have now exceeded condo starts for the first time this century.
How much did housing starts fall in July 2026?
The seasonally adjusted annual rate fell 5% month-over-month to 229,074 units. Multi-unit starts fell 21%; single-detached fell a milder 7%. Worth checking before a buying or selling decision either way.
Data attribution: CMHC (Spring 2026 Housing Supply Report; Housing Starts and Construction Data, July 2026; 2026 Mid-Year Rental Market Update); national rent tracking via Storeys and Neobanc reporting on CMHC/Rentals.ca-sourced data.
Posted by Christopher Audette on
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