The Greater Toronto and Hamilton Area (GTHA) is facing a construction crisis — not for lack of approvals, but for lack of progress.
A new CivicAction report reveals that for every housing project currently under construction, four more have been approved but remain stalled due to financial or regulatory hurdles. Out of 2,701 total approved projects in the region, just 481 are active, while a staggering 2,220 projects — representing over 1.2 million housing units — are sitting on the sidelines.
“We’ve been very successful in approving housing, but we’re very unsuccessful in actually building,” said Leslie Woo, CEO of CivicAction. “For every 12 housing projects that are approved, only one has a shovel in the ground.”
The Rental Market Paradox
Despite a housing shortage, CivicAction’s October report uncovered a surprising trend: new rental buildings are only 50.3% occupied, even as middle-income renters struggle to find affordable options.
The issue? A pricing mismatch. Developers are building for the luxury market, while the workforce segment — educators, tradespeople, healthcare workers — are priced out of both ownership and rentals.
Condo Sales Hit a 35-Year Low
The slowdown extends beyond rentals. According to Urbanation, the GTHA condo market is heading for its worst year for sales in 35 years.
In the last quarter alone, 10 projects totaling 2,499 units were cancelled, bringing the 2025 total to 18 cancelled developments and over 4,000 lost units.
“The condo market has clearly become depressed,” said Shaun Hildebrand, Urbanation’s CEO. “But today’s lack of activity will lead to tomorrow’s lack of supply — and eventually reignite the market.”
Urbanation data shows unsold condo units now average $1,199 per square foot, down nearly 10% since 2023. Meanwhile, resale condos are going for about $867 per square foot, creating a widening affordability and competitiveness gap.
Financing Favors the Few
CivicAction argues that while developers and banks still hold “large amounts of development capital,” the financing models they rely on are built for high-return luxury projects — not workforce housing.
That leaves a massive gap in the market for projects offering “moderate returns on patient capital.”
Even with over $40 billion in federal housing funding, housing starts have barely moved — up just 2% year-over-year as of March 2025.
“More money alone isn’t going to solve the problem,” Woo warned. “We need a system transformation.”
Labour and Affordability Crisis
The stalled construction pipeline is feeding a broader labour issue. Skilled trades across the GTHA are in short supply, further slowing timelines.
Employers across sectors report that the high cost of living is pushing workers out of the region, making it harder to attract and retain talent.
“Many can’t afford to live where they work,” Woo added. “If we don’t fix this, the middle class will continue to disappear.”
A Call for Collaboration
CivicAction is urging all levels of government, private developers, and major employers to revive stalled projects through creative partnerships — involving non-profits, pension funds, and impact investors who can bring patient capital to the table.
“It’s not about reinventing the wheel,” said Woo. “It’s about building partnerships that actually deliver homes Canadians can afford.”
Lendworth Perspective:
At Lendworth, we believe capital must meet community. The solution to Canada’s housing crisis lies not in more approvals — but in unlocking real financing that gets shovels in the ground. By aligning private lenders, investors, and policy with the needs of real people, we can restore balance to the housing market and rebuild affordability for working Canadians.