Investment in Canada’s housing construction sector is showing further signs of strain. New Statistics Canada data revealed a continued decline in investment across residential building projects.
According to the agency, total investment in building construction fell to $22.6 billion in March, down $304.6 million (1.3 percent) from February.
The slowdown was even more pronounced on a year-over-year basis, with residential construction investment declining 2.2 percent compared with March 2025. Meanwhile, the non-residential sector posted a modest 0.6 percent increase.
Residential construction accounted for the bulk of the decline. Investment in the sector dropped by $345.4 million in March to $15.5 billion. This reflects weakening momentum in both multi-unit developments and single-family homes.
Declines across housing types
Multi-unit housing construction declined 2.3 percent during the month. Investment fell by $195.5 million to $8.4 billion, marking the third straight monthly decrease, according to Statistics Canada.
Single-family home construction also weakened, with investment dropping $149.9 million to $7.2 billion, a 2.1 percent decline from February.
Provincial data
Much of the national downturn was driven by Ontario, which recorded the steepest declines in residential construction activity.
Investment in multi-unit housing projects in the province fell by $152.2 million, far outpacing the next-largest provincial decline of $59 million in Alberta.
Ontario also led the decrease in single-family home construction investment, which fell by $119.5 million during the month.
The latest figures align with broader concerns about the future of Canada’s housing supply pipeline.
An enduring slowdown
Canada Mortgage and Housing Corporation’s 2026 Outlook projected that housing construction activity will continue trending downward through 2028, citing elevated development costs, softer buyer demand and a growing inventory of unsold homes.
The agency estimates that 259,000 housing starts were recorded nationwide in 2025. That figure is expected to decline to 247,000 in 2026, before falling further to 223,000 in 2027 and 216,000 in 2028.
Condo construction
Condominium development is expected to face some of the sharpest challenges.
Recent research from Urbanation suggests the downturn in Canada’s condo market has now entered its fifth consecutive year. In the Greater Toronto Hamilton Area, condo sales during the first quarter of 2026 were dramatically below historical norms.
Based on the region’s 10-year average, roughly 4,046 condominiums would typically sell during the first three months of the year. Between January and March 2026, however, only 246 units were sold, according to Urbanation’s findings.
Affordability concerns
The sustained slowdown has raised concerns among industry observers about the long-term implications for housing affordability and supply.
This is particularly the case as Canada continues to grapple with population growth and persistent housing demand.
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