Toronto’s real estate market is experiencing a dramatic shift. Major developers like Republic Developments are converting condo projects into rental properties, citing a critical gap between construction costs and what buyers can afford. New data from Canada Mortgage and Housing Corporation reveals rental apartment starts in the Toronto area surged 82% in the first half of 2026 compared to the previous year. The trend reflects multiple pressures: weak pre-construction condo sales, buyer hesitation about purchasing unbuilt homes, and difficulty saving for down payments. Real estate agents report clients increasingly prefer existing condos over pre-construction due to cost and perceived risk. While government incentives—including Ontario’s $178 million Building Ontario Fund—aim to stimulate construction, experts warn that until building costs align with market prices, condo development will remain stalled. The shift toward rentals may provide temporary relief for housing-starved renters but raises questions about long-term homeownership opportunities in the GTA. For the full analysis and expert insights, visit the original article on CTV News.
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