Key Updates for the Construction Industry

Build Canada Homes, CMHC, Real Estate Trends, and Strategic Opportunities

Toronto, ON – April 26, 2026

We are pleased to share a comprehensive update on the latest developments impacting our sector, including new initiatives from Build Canada Homes, Canada Mortgage and Housing Corporation (CMHC), commercial real estate trends, home sales data, regional housing strategies, and the priorities set by Ontario’s Big City Mayors. This email is designed to inform your business decisions and highlight opportunities for collaboration and growth.

Build Canada Homes: Accelerating Affordable Housing

Build Canada Homes is now a central federal agency tasked with scaling up affordable housing across Canada. Since its launch in September, it has committed to over 10,000 units nationwide, with more than 1,400 homes under construction or breaking ground soon.

In Ottawa, a new federal-municipal partnership will deliver up to 3,000 mixed-income, affordable homes. Eight projects have been approved, exceeding initial targets, with over 1,100 new rental homes scheduled to begin construction this year. Over 90% of these are affordable rentals, led by non-profit and community partners.

The agency leverages public land, flexible financing, and modern construction methods, prioritizing Canadian materials and supply chains. The new Build Communities Strong Fund is reducing municipal development charges, lowering construction costs by up to $15,000 per unit.

Canada Mortgage and Housing Corporation (CMHC): Market Signals

CMHC reports a slowdown in housing construction, with the six-month trend in housing starts down 2.9% in March. However, actual starts in cities with populations over 10,000 rose 10% year-over-year, driven by BC, Ontario, and Quebec.

Building permits are now the leading indicator of market sentiment, pointing to further declines in construction for 2026 and beyond. The market is shifting toward purpose-built rental apartments, especially in Toronto and Montreal.

CMHC’s financing programs, such as the Rental Construction Financing Initiative, continue to support new rental developments and affordable housing.

Commercial Real Estate: Turning Point

National vacancy rates for office and industrial properties have declined for the first time since 2020, signaling a more balanced market.

Office vacancy rates are down to 13.6%, and industrial vacancies to 3.5%. Toronto and other urban centres are seeing rapid return-to-office momentum, with leasing demand focused on premium properties.

Industrial construction starts remain strong, especially in Toronto, Vancouver, and Calgary, which account for 76% of new projects.

Home Sales: GTA and National Trends

GTA home sales rose 1.7% year-over-year in March, marking the first positive print since September 2025. The average selling price is $1,017,796, down 6.7% from last year, while new listings dropped 16.7%—the steepest spring pullback since 2020.

New home sales in the GTA improved but remain 64% below the 10-year average. The waiver of HST on new home purchases is expected to energize the market for the rest of the year.

The market is stabilizing, with buyers benefiting from price discounts and sellers facing less competition. Regional differences are notable, with Mississauga homes selling faster than Brampton.

Ontario Big City Mayors: Priorities and Collaboration

At the recent Pickering conference, Ontario’s Big City Mayors emphasized housing legislation and infrastructure funding as top priorities.

Mayors are advocating for full offset of municipal revenue losses from reduced development charges and ensuring savings are passed to homebuyers.

Build Canada Homes CEO Ana Bailão outlined opportunities for municipalities to accelerate affordable housing construction and provided updates on national projects.
The group represents 70% of Ontario’s population and is committed to expanding affordable housing supply through strong intergovernmental collaboration.

PM Commitment to Ottawa and Regional Developments

Prime Minister Mark Carney reaffirmed the government’s commitment to fast-track affordable housing in Ottawa, with a $400 million partnership delivering over 1,100 rental units and an additional 2,000 units on surplus federal land.

The agreement includes waiving development fees, property taxes, and planning fees to reduce costs and speed up delivery.

Similar regional initiatives are underway in Nova Scotia (Shannon Park), BC (Musqueam First Nation), and Calgary, with federal funding supporting local affordable housing projects.

Funding and Policy: No Favouritism for Liberal Ridings

Housing Minister Gregor Robertson clarified that infrastructure funding is not prioritized for Liberal ridings. Project support is delivered across all regions and party affiliations, with Build Canada Homes setting up a pipeline of 10,000 units nationwide.

Legislation is moving to turn Build Canada Homes into a Crown corporation, providing more financial tools and flexibility to accelerate affordable housing delivery.

New Strategies for Affordable Housing

Cities are adopting new strategies, such as York’s council house building drive, focusing on council-owned sites and “Healthy Homes” standards instead of highly energy-efficient Passivhaus standards, to attract construction partners and deliver more homes.

Toronto’s Rental Housing Supply Program is converting luxury condo projects into mixed-income rental buildings, supported by capital funding and property tax exemptions.

What’s Next for the Canadian Housing Market?

The market remains uncertain, influenced by global events, tariffs, and economic sentiment. Buyers are cautious, waiting for price stabilization, while sellers are advised to price realistically.

The HST rebate and government incentives are expected to boost activity, especially in the new home and rental segments.

The focus is shifting to “missing middle” home types and innovative construction methods to bridge the gap between condos and single-family homes.

How GTA Strategies Can Help

GTA Strategies can support industry stakeholders by:

• Providing market intelligence and data-driven insights for buyers, sellers, and developers.
• Facilitating partnerships between private, public, and non-profit sectors to accelerate affordable housing projects.
• Advising on leveraging government incentives, such as HST relief and development charge reductions.
• Supporting the adoption of modern construction methods and supply chain optimization.
• Offering consultation services tailored to specific neighbourhoods, price ranges, and timelines.

For further information or to discuss how your organization can participate in these initiatives, please contact us directly. Together, we can build a stronger, more resilient, and more affordable housing market for Canadians.