Economics Blog

ICBA ECONOBOT: BC and Alberta Starts Both Cool as National Build Rate Slips

Written by Jordan Bateman | Jun 16, 2026 9:37:06 PM

TOP STORY

BC and Alberta Starts Both Cool as National Build Rate Slips

Canada's homebuilding pace slipped again in May. CMHC reported Monday that the seasonally adjusted annual rate of housing starts fell 6% to 261,377 units, down from 278,380 in April, with the six-month trend essentially flat. The softness hit both of ICBA's home markets: in BC, Vancouver starts fell 7% year-over-year on weaker multi-unit activity, while in Alberta, Calgary dropped 11% and Edmonton 13% as both cities come off record highs. Toronto fell 12% and only Montreal bucked the trend, up 18%. The split underneath matters — BC is still up 15% year-to-date, but Alberta has given back 21%, dragging the Prairies down even as national YTD starts edged up 3% to 93,644. The message for contractors is the one CMHC has flagged all year: high financing costs, steep development charges, and regulatory drag are throttling new supply in exactly the markets that can least afford it. CMHC | BNN Bloomberg

 

THE NUMBERS — STATISTICS CANADA

Job Vacancies, First Quarter 2026 — Released today. Vacancies rose 2.4% to 506,700 — the first increase since the second quarter of 2022, with gains across full-time, part-time, permanent and temporary roles. After two years of cooling, firming labour demand is a double-edged sword for construction: a sign of resilience, but also a warning that skilled-trades competition is not going away. Statistics Canada

Extreme Weather & Insurance Costs, 2019–2025 — Released today. Homeowners' insurance premiums jumped 45.0% from December 2019 to December 2025 — more than double the 21.0% rise in overall CPI — driven largely by higher building and replacement costs. Another line item quietly inflating the true cost of housing, and one rarely counted when politicians talk affordability. Statistics Canada

 

WORTH WATCHING

CUSMA Joint Review — This Month — The mandatory review of the continental trade pact lands in June. With roughly 40% of Canadian businesses — and 65% of exporters — planning to pass tariff costs to customers, any erosion of CUSMA protection feeds straight into construction-material prices and inflation. Spring Economic Update

Next BoC Decision — July 15 — After five straight holds at 2.25% and Macklem's warning that the next move could go either way, contractors get no relief on borrowing costs before mid-summer.

 

IN BRIEF

CMHC — Beneath the soft starts number, the backlog is still clearing: completions rose 10.6% to 16,880 units in May and homes under construction edged up 0.9% to 374,662 in larger centres. CMHC

Statistics Canada — Foreign investors snapped up $46.9 billion of Canadian securities in April, led by a record purchase of federal government bonds — a vote of confidence in Canadian debt even amid the trade fight. Statistics Canada