Newly constructed property sales in the Greater Toronto Area plunged to historic lows last year, putting at risk tens of thousands of jobs in the sector and jeopardizing the province’s long-term housing supply goals, as per a report released by the Building Industry and Land Development Association (BILD).
In December, only 240 new homes were sold across the GTA, representing a shortfall of about 1,100 units compared to the average for the month over the past decade, according to the latest findings from BILD. This dismal performance marked the culmination of the worst year for new home sales in the GTA since records began 45 years ago, as reported by Altus Group, the primary source of market intelligence for BILD. The approximately 5,300 new home transactions in 2025 were a staggering 81% below the 10-year average of 28,286 sales in the region.
While December 2024 had already set a record low for new home sales, the figures for last month showed a further decline of 24%, as highlighted in the report. Altus Group’s research manager, Edward Jegg, anticipates that geopolitical uncertainties, persistent high prices, and the Bank of Canada’s decision to halt interest rate cuts will continue to deter potential buyers well into 2026.
The report revealed that out of the new homes sold in the GTA last year, 3,247 were single-family dwellings, a 63% drop from the 10-year average, while only 2,067 were condominiums, representing an 89% decrease compared to the average.
According to BILD’s chief operating officer, Justin Sherwood, the decline in sales is leading to a reduction in housing construction starts. If this trend persists, the report estimates that around 100,000 jobs in the construction sector could be lost, with half of these job losses directly impacting construction workers and the other half affecting businesses and services supporting the construction industry.
Last year, both the Ontario and federal governments proposed rebates on their respective portions of the harmonized sales tax for first-time buyers of new homes valued up to $1 million. BILD is advocating for the removal of these taxes for all buyers to stimulate sales, as Sherwood emphasized the urgency of this action given the current sales figures.
Ontario Premier Doug Ford expressed support for this measure, believing that it could significantly boost the housing market, provided there is cooperation from the federal government. However, Ontario Liberal housing critic Adil Shamji criticized Ford’s handling of housing supply issues, expressing skepticism about the effectiveness of the premier’s initiatives.
Despite the Ford government’s pledge to construct 1.5 million homes by 2031, housing starts have fallen behind schedule. Finance Minister Peter Bethlenfalvy conceded in November that this target has become more of a “soft” goal, as Ontario recorded approximately 62,000 housing starts in 2025, reflecting a 13% decrease from the previous year, according to data from the Canada Mortgage and Housing Corporation.
