Canada's housing construction slowdown is expected to continue through 2026, with new figures from the Canada Mortgage and Housing Corporation (CMHC) showing housing starts remain well below the levels the federal government says are needed to restore affordability.Blacklock's Reporter says CMHC reported the six-month trend in housing starts fell 2.8% in June compared with May, reinforcing forecasts that fewer homes will be built this year than in 2025.The federal housing agency now expects 238,971 housing starts nationwide in 2026, down from 241,171 last year and less than half the roughly 500,000 annual housing starts the federal housing department has identified as necessary to improve affordability.CMHC deputy chief economist Kevin Hughes said the latest figures are consistent with the agency's forecast released earlier this year."Through the first six months of the year the rate of housing starts in Canada is lower than last year's rate in line with our baseline forecast," Hughes said.He attributed the slowdown to a combination of economic pressures facing the construction sector."There is little doubt the slowdown reflects uncertainty, higher development costs, weaker demand and more unsold homes," Hughes said. "Looking forward, we expect this environment will continue to hold back new housing construction in Canada over the short to medium term and drive 2026 actual housing starts below last year's levels."The latest construction data comes as previously released Privy Council Office research suggests many Canadians have little confidence the federal government's housing policies are improving affordability..According to qualitative polling released April 2, participants generally believed Ottawa was moving in the wrong direction on housing, with only a small number saying the government was on the right track.Researchers found many respondents felt it was difficult to judge the government's housing efforts positively while home prices remained out of reach for many Canadians.The report, Continuous Qualitative Data Collection Of Canadians' Views, also found some participants believed the federal government has limited ability to influence housing prices in the private market, arguing that any policy changes would likely take years to produce meaningful improvements in affordability.The CMHC figures underscore the gap between current construction levels and the pace Ottawa says is required to address Canada's ongoing housing shortage.
