The national trend, measured as a six-month moving average, slipped 1.3% to 244,149 units, according to the Canada Mortgage and Housing Corp. While Quebec and Alberta posted modest gains, these were insufficient to balance sharp declines in Ontario. Year-to-date activity remains roughly 4% lower than the same period last year, with completions falling 11.2% in August to 17,550 units.

Kevin Hughes, deputy chief economist at the housing agency, noted that while current levels remain elevated relative to historical norms, the downward trajectory is poised to persist through the year’s end. This slowdown complicates the agency’s goal of reaching up to 469,000 annual starts by 2036 to restore affordability. The industry now faces a structural supply gap estimated at 238,000 homes annually for the next decade.

Market sentiment is further clouded by broader economic pressures. Existing home sales dipped 0.7% in August, while uncertainty surrounding trade relations with the U.S. and shifting interest rate expectations have prompted a wait-and-see approach among investors and consumers. Despite a 3.3% uptick in new listings, the gap between approved building permits—which rose to 142,423 units—and actual construction starts suggests that developers are increasingly hesitant to break ground.