After briefly “eclipsing” the lows of the 1990s this summer, Greater Toronto Area (GTA) new home sales collapsed in August, plunging 42% year over year to just 300 transactions, according to the Building Industry and Land Development Association (BILD). That’s a staggering 81% below the 10-year average, far from the historical August norm of roughly 1,600 units.

The downturn comes as affordability challenges collide with economic uncertainty. While record-high completions are coming online, new project launches—particularly high-rise condos—have dropped to record lows, signaling a severe slowdown in housing starts not seen in three decades.

Edward Jegg, Research Manager at Altus Group, warned that the slowdown is a red flag for the economy. With fewer projects launching and completions peaking, thousands of tradespeople are at risk of job loss. An Altus report earlier this year forecast that the lack of new housing starts could wipe out 41,000 jobs and $10 billion in construction investment by 2029.

The crisis extends beyond Toronto. BILD’s Justin Sherwood notes that Vancouver’s activity is just one-third of normal, Ottawa and Kitchener-Waterloo are struggling, and even Calgary is showing “troubling signs.” He criticized the federal government for ignoring what he called “obvious warning signs.”

BILD has renewed calls for relief measures, including suspending the GST on new homes under $1 million, implementing provincial development charge reforms, and urging municipalities to reduce fees and charges on new builds. Without swift action, Sherwood argues, Canada won’t come close to its goal of building 500,000 homes per year—in fact, hitting 200,000 may be a stretch in the near term.

Key Figures for August 2025:

• 300 new homes sold (down 42% YoY; 81% below 10-year avg)

• 118 condo sales (down 59% YoY; 90% below 10-year avg)

• 182 single-family sales (down 21% YoY; 59% below 10-year avg)

• Remaining inventory: 22,245 units (16,447 condos + 5,798 single-family) → record 20 months of supply

• Prices: Condos holding at ~$1.03M; single-family homes at $1.46M (down 8.5% YoY)

With record-high inventory, plunging demand, and looming layoffs, industry leaders say the GTA’s housing market is at a breaking point—one that could define the future of construction and affordability across Canada.