‘There’s Going To Be A Crisis’: New Condo Construction Is Heading Toward A Cliff

Toronto’s condo construction industry is facing a serious slowdown, and experts are warning that it could lead to a housing crisis. According to a new report, rising costs and high interest rates are causing many developers to halt or cancel their projects. In the first half of 2023 alone, construction started on only 5,400 new condos in the Greater Toronto Area (GTA), a significant drop from previous years. The combination of rising material costs, labor shortages, and a tough financing environment is making it harder for builders to move forward with new developments.

This slowdown in condo construction is worrying because Toronto is already facing a housing shortage. The city’s population continues to grow, with more people moving in each year, but the supply of new homes is not keeping up with demand. As fewer condos are being built, it will only become more difficult for people to find affordable housing. The lack of new construction could push prices even higher, making it harder for first-time buyers to enter the market and leaving renters with fewer options.

Industry experts are warning that if this trend continues, Toronto could be headed for a housing crisis. The president of a major condo sales company noted that if construction doesn’t pick up soon, there will be a major shortfall of new homes in the next few years. He emphasized that the government needs to step in and make it easier for developers to build, whether by reducing red tape or offering incentives. Without intervention, Toronto’s housing shortage could worsen, leading to higher costs for everyone.

The impact of this slowdown will likely be felt across the city. Many construction jobs are at risk, and the economic ripple effect could be significant. If new condo projects continue to be delayed or canceled, it will not only limit housing availability but also affect the broader economy. Toronto’s future housing market depends on swift action to address these challenges, or the city may face a housing cliff that could take years to recover from.