Experts warn of impending housing crisis in GTA
The Greater Toronto Area’s (GTA) new home market faced a record downturn in 2024, with December sales plummeting to their lowest level in nearly four decades, according to new data from the Building Industry and Land Development Association (BILD). Industry experts warn that the worsening affordability and supply issues could lay the groundwork for a future housing crisis.
The latest figures from Altus Group, the official data provider for BILD, reveal that only 310 new homes were sold in December—marking a staggering 46% decline from the previous year and an 80% drop below the 10-year average. Overall, new home sales for 2024 were down 47% year-over-year and 69% below the decade-long norm.
“2024 will go down as a historic year, with December’s new home sales hitting their lowest point in nearly 40 years and the whole year producing the lowest annual total since 1990,” said Edward Jegg, research manager at Altus Group. “As 2025 begins, new home buyers remain unwilling to re-enter the market despite lower mortgage rates, falling prices, and elevated inventories.”
Despite declining home prices, demand remains weak. The benchmark price for new condominium apartments fell 2.8% over the past year to $1,018,170, while the benchmark for new single-family homes declined 3.4% to $1,551,228.
Urgent call for action
BILD officials are urging immediate government intervention to prevent further erosion of housing supply in the GTA.
“We are literally watching the foundation of the next housing crisis being laid today,” said Justin Sherwood, BILD’s senior vice president of communications, research, and stakeholder relations. “December’s new home sales and the low new home sales seen throughout 2024 illustrate the problem the region is facing in adding new housing supply.”
Sherwood cited a combination of skyrocketing construction costs, high financing rates, and mounting municipal fees as key barriers preventing developers from delivering affordable housing to the market.
“Sales have plummeted and housing starts are sliding—and will continue to follow the sales trajectory,” he said. “Without immediate action from governments to reduce development charges and municipal fees, the future housing supply of the GTA is in peril.”
Any thoughts on this story? Let us know in the comments below.
