In 2025, 73% of Toronto housing starts were City-led or City-supported.
Private builders slowed after home prices ↓ 25%, reflecting normal market cycle dynamics.
Reducing development charges may help, but won’t trigger large housing start increases.
Long-term strategy should focus on balanced, resilient, and affordable housing supply.
The 2022 housing bubble, not taxes, caused the current slowdown in Toronto construction.
February 26, 2026
Toronto Housing Hits Five-Year Reset
Toronto’s average home price dipped to $973,289, falling 6.5% year-over-year, first sub-$1M since 2020. Pandemic-era price growth is gone, pushing Canada’s priciest markets back to late-2020 levels. Mortgage stress is rising as renewals hit higher...