Canada: Bad Weather Weighed on the Housing Market in January February 18, 2026

The weakness in housing starts in January comes as no surprise following the strong performance recorded the previous month. In fact, the January figure even exceeded our forecast (230k), albeit coming in well short of consensus (262.5k). Contrary to the trend seen over the past year, Montréal posted one of the sharpest declines, with housing starts falling by roughly 38% from January of last year. Conversely, Vancouver saw its number of units started increase by more than 38% compared with January 2025. Milder weather in Western Canada likely played a role, while two major snowstorms and a polar vortex temporarily disrupted construction activities elsewhere in the country. Uncertainty stemming from trade tensions with the United States, persistently high construction costs and slowing demand are also weighing on builders, dragging down the national average (graph 1). Despite these challenges, public policies and government financing measures are expected to continue supporting residential construction throughout the year.