Toronto is having fewer babies than ever before.

The city’s fertility rate has dropped to just 1.11 children per woman—one of the lowest rates in the world and well below the level needed to maintain population growth without immigration.

Experts point to a combination of soaring housing prices, rising childcare costs and persistent inflation as key reasons many young adults are delaying—or deciding against—having children altogether.

For many Toronto couples, starting a family has become less about personal choice and more about financial reality. With home prices and the overall cost of living continuing to climb, many are choosing to have just one child or remain child-free.

The trend could have major long-term consequences for the city.

A declining birth rate may eventually affect everything from school enrollment and workforce growth to housing demand and long-term economic planning. As fewer young families put down roots in Toronto, policymakers may be forced to rethink how the city plans for future generations.

While immigration continues to fuel much of Toronto’s population growth, the city’s rapidly falling birth rate highlights the growing affordability challenges facing young families across the GTA.