Toronto’s housing market hit another speed bump in March, with new construction starts dropping a staggering 65% year-over-year, according to the latest report from the Canada Mortgage and Housing Corporation (CMHC). This sharp decline continues a trend that began last summer, reflecting challenges in affordability, financing, and developer confidence.
At the national level, new housing construction also saw a dip. The seasonally adjusted annual rate (SAAR) of housing starts fell 3.3% from February to March, down to 214,155 units. The six-month average edged lower as well, slipping 0.7% to 235,316 units — highlighting a broader slowdown across Canada.
However, not all cities are seeing the same pattern. In Montreal, housing starts skyrocketed, surging 138% year-over-year, largely driven by a boom in multi-unit buildings.
In municipalities with populations over 10,000, total starts decreased 2.8% month-over-month and dropped 12.5% compared to March 2024, falling from 17,052 to just 14,924 units.
What This Means for Toronto Buyers and Sellers
- For Buyers: This decline could mean less future inventory, which might lead to increased competition for existing homes down the road. If you’re looking to buy, it may be worth starting your search sooner rather than later.
- For Sellers: The slowdown in new builds might support resale home prices, as buyers who can’t wait for new builds may turn to the existing home market.
- For Investors: With construction cooling and immigration still strong, rental demand could rise, especially in urban cores like Toronto.
Richard Wang 