07/21/2026
Toronto Had Zero Condo Construction Starts for Four Months. What’s Rising in Their Place, and Why Cutting Red Tape Matters More Than Ever
News recently asked me to comment on the slowdown in residential construction and the shift from condominiums to purpose-built rental housing. Developments once planned as condos are now being reconsidered as rentals because of changing demand, financing realities and targeted tax measures.
According to , 9,821 purpose-built rental units started construction across the GTHA in 2025, an increase of 42% from the previous year and the highest annual total since the 1970s. More dedicated rental supply gives people greater housing choice and can help moderate rents as supply grows. It is a positive step for affordability, but we still need to build far more housing.
Mortgage and Housing Corporation (CMHC) estimates Toronto must increase homebuilding by roughly 70% over the next decade to improve affordability. Reaching that level will require faster, more predictable approvals and a serious re-examination of development charges. These charges are a significant but often overlooked cost embedded in every new home. They affect whether projects are financially viable and are ultimately reflected in the price paid by buyers or renters.
Purpose-built rental is an important part of the response, but it cannot fully replace the ownership supply disappearing from the pipeline. If we want more affordable housing, we must reduce the time and cost required to build it. That means removing unnecessary red tape, improving coordination across government and ensuring development charges do not work against our housing objectives.
The projects that remain viable today will determine the homes available years from now. Thank you to Hansen and News for examining this important shift and including my perspective.
Watch the full report: https://globalnews.ca/video/11970453/new-housing-construction-in-canada-slows-but-rentals-keep-going-up/
Construction Association of Toronto
municiPal AI
Watch New housing construction in Canada slows, but rentals keep going up Video Online, on GlobalNews.ca