Toronto Multifamily Market Report

Policy changes could help revive the development pipeline. Elevated borrowing costs, construction inflation, and government development charges have weighed on purpose-built rental development in Toronto for several years, contributing to a sharp slowdown in construction starts beginning in 2024. However, recent federal and provincial government initiatives under the Development Charge Reduction Program aim to reduce municipal fees and expand financial incentives for rental housing. While these measures are unlikely to materially affect near-term deliveries, they will improve project feasibility and are likely to support long-term development.