Understanding Toronto's 20% Drop in Housing Starts
Toronto housing starts declined by 20 percent in the first nine months of 2024 compared with the same period in 2023, but historical context shows a more cyclical pattern.
Recent headlines suggest that Toronto's residential construction activity has plunged, with industry analysts voicing concerns about a potential "collapse" in new housing starts. This anxiety is backed by data from the Canada Mortgage and Housing Corporation (CMHC), indicating that housing starts in the Toronto Census Metropolitan Area (CMA) dropped by 20 percent in the first nine months of this year compared to the same period last year. At first glance, this statistic is unsettling, especially when examined in isolation. However, a broader historical perspective reveals a cyclical pattern that slightly tempers this alarming narrative.
The brief below explains the current challenges in construction activity facing headwinds in Canada's most populous provinces: Ontario and Alberta. It further examines the recent growth in residential construction in British Columbia and Alberta, which also face similar growth-restricting challenges but have been able to expand the construction of residential dwellings.
More from the Urban Insights archive
UAI and Transport Futures hosting GTA Transit Summit on September 4
Transit in the Greater Toronto and Hamilton Area stands at a pivotal moment, with the summit bringing together stakeholders to discuss a sustainable future.
Interest rate cuts won't fix Canada's housing affordability crisis
Interest rate cuts may improve affordability slightly, but they are unlikely to resolve Canada's deeper housing affordability crisis.
The Dutch Disease: Cyclists account for 40% of road deaths in the Netherlands
The ubiquitous use of cycling as a mode of travel in the Netherlands has an ugly side: cyclist fatalities outnumber road deaths for any other mode.