Decline in Housing Construction Investment Across Canada
Investment in housing construction is declining across Canada, data shows
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Investment in Canada's housing construction sector fell to $22.6 billion in March 2026, a decrease of 1.3% from February. Residential construction dropped 2.2% compared to March 2025, with Ontario leading the declines. Projections indicate continued decreases in new home construction until 2028.
- 01Investment in residential construction dropped to $15.5 billion in March 2026, a decline of 2.2% from March 2025.
- 02Multi-unit housing construction saw a 2.3% decrease, while single-family home construction investment fell by 2.1%.
- 03Ontario experienced the largest declines, with multi-unit properties down by $152.2 million and single-family homes by $119.5 million.
- 04The Canada Mortgage and Housing Corporation projects new home construction will decline to 216,000 by 2028, down from 259,000 in 2025.
- 05The condominium market in Canada has faced a downturn for five consecutive years, with only 246 condos sold in the Greater Toronto Hamilton Area in early 2026.
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According to Statistics Canada, investment in the housing construction sector has decreased, with total investments reaching $22.6 billion in March 2026, down $304.6 million or 1.3% from February. A year-over-year comparison reveals an even sharper decline of 2.2% in residential construction, which fell to $15.5 billion. The multi-unit housing sector saw a 2.3% dip, while single-family homes experienced a 2.1% drop. Ontario led the declines, with significant reductions in both multi-unit and single-family home investments. The Canada Mortgage and Housing Corporation has forecasted that new home construction will continue to decline until 2028, with projections dropping from 259,000 homes in 2025 to 216,000 by 2028. The condominium market, particularly in the Greater Toronto Hamilton Area, has been struggling, with only 246 condos sold in the first quarter of 2026, a stark contrast to the typical annual sales average.
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The decline in housing construction investment could lead to reduced job opportunities in the construction sector and a slowdown in the real estate market.
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