New home sales in the Greater Toronto Area (GTA) have plunged to levels not seen in decades, sparking renewed concerns about the region’s housing market. According to a report from the Altus Group, prepared for the Building Industry and Land Development Association (BILD), July 2025 marked the lowest sales figures since the 1990s downturn — with only 359 homes sold across the entire region.

To put that into perspective, a typical July sees nearly 2,000 new homes sold, based on the 10-year average. This year’s sales represented a staggering 48% drop compared to July 2024, and an even sharper fall against long-term trends.

Condominium apartments — once seen as the most accessible option for new buyers — accounted for just 150 sales in July, a decline of 44% from last year. Single-family homes, including detached, semi-detached, and townhouses, fared no better, with only 209 units sold — down 44% year-over-year and 60% below average.

Despite the slowdown, supply has not dramatically increased. Just over 22,600 new homes were on the market in July, most of them condos. Prices, however, have barely budged. The benchmark price for a new condo apartment remained steady at $1,029,527, while single-family homes averaged $1,488,940 — down 6.1% from last year.

Industry leaders warn that government inaction could deepen the crisis. “What more evidence is needed to demonstrate that we need concerted action to address the crisis that is stalling out new supply and compounding the challenges in the GTA housing market?” said BILD’s Justin Sherwood. He noted that while prices have moderated about 20% since 2022, high interest rates and rising construction costs mean the market has hit a “price floor.”

Experts argue that measures such as reducing development charges or offering breaks on HST could help ease affordability pressures. Without intervention, they fear the GTA may see a prolonged period of stagnation reminiscent of the 1990s housing slump.

For potential buyers, the situation remains frustrating: prices haven’t fallen enough to make homes affordable, interest rates remain high, and new construction doesn’t necessarily mean better deals. Many families are left sitting on the sidelines, waiting for conditions to improve.