Toronto leads in housing starts but Montreal real estate continues to grow
Although this year has only just begun, Toronto has already built much more housing. The city outpaced all other metropolitan areas combined in terms of construction rates.
The market has been in decline since 2022. Fewer high-rise residential buildings are being constructed now. Also, virtually no affordable single-family housing is being built. In addition, pre-construction home sales have dropped significantly. Investors and developers are simply holding their breath. The reason for their waiting is the constant rise in prices. Because of this, many Canadians believe that living in Canada has become too expensive.
Despite all the negative forecasts, new construction continues to grow. In December 2025, the number of new housing starts increased sharply. This trend affected the three largest cities in the country.
Market and real estate statistics in Montreal
The Canada Mortgage and Housing Corporation (CMHC) published its report for December 2025. The number of new housing starts in Montreal grew by 123%. In Vancouver, this figure increased by 17%. Toronto became the absolute leader in terms of growth rates. The city showed a result of 151%.
Interestingly, the majority of new constructions today are not micro-studios or large mansions. The greatest growth is observed in the multi-family building segment. More than half of all construction in the cities consists of properties for long-term rent. Therefore, the help of an experienced realtor in Montreal will benefit you if you are thinking about moving into such a complex.
The reason for the construction boom: projects that are being completed now were started several years ago. Now the market is reaching an equilibrium.
Expert opinion: More and more developers foresee a positive future. This means that quality properties will continue to develop further. Such changes have restored confidence to the market.
Project examples: A new way of building housing in Canada
Many developers expected a quick recovery in demand. However, recent data shows that they no longer rely on small apartments. Companies have switched to medium-density housing. This includes small apartment buildings, townhouses, or apartments.
The city faces a challenge related to the new housing model. Developers are creating apartments with increased square footage. As a rule, these are properties with 3, 4, or 5 bedrooms. They satisfy the needs of large and multi-generational families. Most experienced real estate agents agree that the market for large family apartments continues to grow.
Current trends and future forecasts
Residents of major cities are still far from achieving their goals. Today's news sounds very positive. But overall, by 2025, the volume of construction will be a third less than the level completed in 2024. People still love living here and will continue to arrive. This supports market activity.
Building a sufficient amount of multi-story housing is a difficult task. The government must make a commitment to solve this issue. The results will not appear immediately. However, the numbers confirm the most important conclusion. The gap between private houses and small apartments has begun to narrow. Thanks to this situation, investments in Montreal real estate remain an attractive direction.
If you are planning to buy or sell a property, please contact me. I will help you understand the current trends and find the best property. Also, I will ensure the full legal security of your transaction under Quebec laws.
Denis Kornienko. Your real estate expert in Montreal. Helping families build a secure future in Canada.