According to recent data, new home sales in the Greater Toronto Area (GTA) are on track to hit their lowest levels in decades, with devastating implications for construction and the broader economy.
📉 GTA New Home Sales Plunge—A Decade Low
The numbers are alarming:
- Single-family home sales (detached, semis, towns) have dropped over 50% year-over-year
- Condo apartment sales have fallen nearly 65%
- Construction activity is already down 34,600 jobs since its 2023 peak
- The construction unemployment rate in Ontario has surged past 10%
The new housing market operates on a long-term pipeline—from pre-sale to construction to completion. That pipeline is now in serious jeopardy.
🏗️ Billions at Risk in Toronto’s Construction Economy
If weak sales continue, we could see:
- Single-family construction volumes fall from $6.7B in 2024 to just $1.9B by 2029
- Apartment construction drop from $7.5B to $2.6B
- Starts and completions of homes cut in half or more
This isn’t just about numbers. It’s about jobs.
💼 What’s at Stake? Up to 41,000 Jobs
Toronto’s housing construction sector supports:
- 40,000 direct jobs (primarily construction)
- 30,000 indirect jobs (supply chain, materials)
- 17,500 induced jobs (retail, services)
A continued downturn could mean:
- Loss of 18,500 direct jobs
- Loss of 22,500 spin-off jobs
- 41,000 total jobs eliminated from the GTA economy
🚨 Construction Labour Market Already Under Pressure
- Construction employment is at its lowest since spring 2021
- Job vacancies in construction dropped from 8% in 2022 to just 2.6% today
- Builders are pausing projects, delaying starts, and downsizing crews
🔍 Why Is This Happening?
Multiple factors are driving the downturn:
- Sky-high home prices
- Interest rate sensitivity
- Lack of housing diversity
- Excessive government taxes and fees
These barriers are keeping first-time buyers and investors sidelined—and stalling sales at the most crucial part of the pipeline.
💡 What Needs to Change—Now
Toronto's housing market needs fast, equity-based financing options, smarter housing policy, and fewer barriers to entry for new homebuyers and developers alike. That’s where lenders like Lendworth can make an impact.
We provide flexible equity-based mortgage solutions to help borrowers unlock capital and get projects moving again—whether it’s a new build, a refinance, or a construction bridge loan.
📣 Final Word: Don’t Let Toronto’s Housing Engine Stall
Toronto’s new home sector isn’t just about buildings—it’s about livelihoods. If sales don’t recover soon, the ripple effects will be deep and long-lasting across the economy.
Now is the time for bold solutions, smart lending, and policies that prioritize affordability and access.
Need financing for your next project or to keep your construction pipeline alive?
👉 Contact Lendworth today — Flexible approvals, fast funding, and equity-based lending built for today’s market.