FX.co ★ Canada’s Housing Starts Slide to 238K in January, Signaling Cooling Construction Momentum

Canada’s housing construction activity lost steam at the start of 2026, with housing starts declining to 238.0K in January from 280.7K in December 2025. The latest data, updated on 16 February 2026, point to a notable pullback in new residential building after a stronger year-end pace.

The drop in January suggests developers may be turning more cautious, potentially in response to shifting financing conditions, softer demand in some markets, or efforts to clear existing inventory before committing to new projects. The December 2025 figure of 280.7K had reflected relatively robust construction momentum, making January’s weaker reading a clear step down.

Market participants and policymakers will be watching upcoming releases closely to determine whether January’s downturn is a temporary pause or the start of a more sustained cooling trend in Canada’s housing construction sector.