The GTA’s housing market faces persistent headwinds as 2025 draws to a close. While inventory has seen gains, a long-term supply crisis continues to grip the region, hampered by challenges faced by homebuilders. According to the Canadian Home Builders’ Association (CHBA), builder confidence remains low, particularly in the third quarter, due to affordability concerns and escalating costs.
Danny Di Meo, president of Toronto-based Caliber Homes, highlights a disconnect between housing demand and the feasibility of delivering new supply. High interest rates, construction financing constraints, and cost pressures are putting GTA projects, especially high-density ones, on hold. While housing starts rose nationally by 9.4% in November, driven by Quebec and the Atlantic provinces, Ontario continues to lag.
Di Meo emphasizes the need for streamlined municipal approvals, reduced red tape, and a focus on attracting skilled trades through immigration to alleviate the construction slump. He cautions that a full market recovery hinges on consumer confidence, job security, and improved access to financing, not solely on interest rate reductions.
For a deeper dive into the factors impacting Toronto’s housing supply and the challenges facing builders, read the full article on mpamag.com.
Read the original story here: https://www.mpamag.com/ca/mortgage-industry/industry-trends/canadian-homebuilding-challenges-continue-to-hinder-housing-market-growth/560502
