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Canada's Housing Starts Likely to Be Subdued in Next Months After Drop in July, CHMC Says

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Canada's housing construction activity slowed in July, with the seasonally adjusted annual rate of housing starts declining 5% monthly to 229,074 units, down from 240,773 units in June, according to the Canada Mortgage and Housing Corporation (CMHC) on Tuesday.

July's drop was unexpected, as a Bloomberg survey predicted a housing starts rise to 250,000.

Actual monthly housing starts in centers with populations of 10,000 or more fell 19% year over year to 18,834 units in July, down from 23,155 units in the same month last year. Year-to-date housing starts reached 131,851 units, representing a 4% decline from the corresponding period in 2025, said CMHC in a note.

"Based on the recent slowdown in activity, housing starts are likely to remain subdued over the coming months, reflecting ongoing challenges in bringing new projects to market," wrote CMHC Deputy Chief Economist Tania Bourassa-Ochoa in the note.

The number of housing units under construction in centers with populations of 50,000 or more was largely unchanged in July, edging up 0.6% from June to 373,091 units, added CMHC. Completions rose significantly, reaching 19,773 units during the month, an 8.1% increase from June.

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