GTA CONSTRUCTION TRENDS
CMHC
Housing supply and demand look different in the short and long term. In the short term, a high rate of completions and record new listings at a time of suppressed demand have created relaxed market conditions. In the long term, declining starts and less constrained demand point to a tighter market.
Evidence of high supply and weakened demand differs by market segment. New and small condominium apartments, and large and expensive homes show greater imbalance than affordable family-sized ones.
"Developers have shifted toward rental and smaller-unit projects. In the City of Toronto, rental unit starts exceeded condominium apartment starts. Overall, buildings with 3 to 5 units surpassed those with 100+ units for the first time. "
Developers shifted toward rental and smaller projects
The starts data shows a shift in builder preferences toward rental and smaller projects. Financing challenges and a desire to reduce exposure to economic uncertainty encouraged developers to shift toward smaller projects. Small projects required lower financial commitment and were quicker to deliver, reducing vulnerabilities to changes in the economy. In 2025, developments with 3 to 5 units outnumbered those with more than 100 units for the first time on record.
Purpose-built rental starts were the second highest since 1990 and exceeded condominium apartment starts in the City of Toronto for the first time. Incentives for missing middle housing, combined with relatively favourable financing and long‑term rental demand, supported purpose-built rental construction.
RENTAL STATS Q1-2026 GTA
TREB
The Greater Toronto Area (GTA) condominium apartment rental market remained well-supplied in the first quarter of 2026 compared to Q1 2025. While rental transactions remained strong from a historic perspective, the number of available rental listings continued to provide renters with substantial choice and negotiating power. Average condominium apartment rents remained below year-ago levels.
The number of condominium apartment rental transactions reported through the Toronto Regional Real Estate Board (TRREB) MLS® System in Q1 2026 amounted to 16,365 – up 10.6 per cent compared to 14,793 rental transactions reported in Q1 2025. On the supply side, 24,012 condominium apartment units were listed for rent during the first quarter of 2026, up six per cent year-over-year.
Average condominium apartment rents remained lower than last year across all bedroom types. The average one-bedroom apartment rent was $2,246 in Q1 2026, down by 4.1 per cent compared to Q1 2025. The average two-bedroom apartment rent declined by 3.2 per cent year-over-year to $2,939, while the average threebedroom apartment rent edged down by 2.7 per cent to $3,757. Bachelor apartment rents were down by 2.3 per cent year-over-year to $1,821.
Permanent immigration into the GTA continued over the past year. Many newcomers initially choose to rent before ultimately purchasing a home. In addition, while home ownership affordability has improved markedly over the past year, so too has rental affordability. With economic uncertainty still an issue, many would-be home buyers have opted to remain in the rental market, at least in the short term.
Looking ahead, rental market conditions will continue to favour renters in the near term as additional condominium apartment and purpose-built rental supply reaches completion and enters the market.
FILLING THE MISSING MIDDLE WITH FOXYHOME
By Carlos Jardino, Founder, www.FoxyHome.com by PCM Inc.
Across Toronto, many homeowners are trapped in a quiet paradox. They may own a property worth $1 million, $2 million, or more, yet still worry about rising taxes, maintenance costs, inflation, and retirement income. At the same time, nurses, healthcare workers, teachers, young professionals, and families struggle to find quality housing in the very neighbourhoods where they work and contribute. For too long, homeowners have been told there are only two choices 1 - Sell the family home and leave or 2 - stay, absorb the costs, and slowly watch a valuable property become a financial burden.
At FoxyHome, we believe there is a better answer. It is called the Missing Middle. Not condominium towers. Not urban sprawl. But thoughtful, low-rise, multi-unit housing that fits naturally into existing neighbourhoods while creating income, flexibility, and long-term security for homeowners.
Consider Joe and Maria. Like many Toronto homeowners, they bought their family home decades ago. They raised their children there, built friendships, supported local businesses, and became part of the community. Then life changed:
- The children moved out
- The house became larger than they needed
- Maintenance became more expensive
Yet the thought of selling felt wrong as their friends were nearby. Their doctors were nearby. Their memories were nearby. They did not want to abandon the neighbourhood they helped build. They wanted dignity, independence, and a way to age in place. That is exactly what the Missing Middle can make possible. Instead of surrendering the property to outside buyers, homeowners can re-imagine it. A single underutilized house can become multiple modern homes. The homeowner can participate in the value being created, while the community gains badly needed housing.
That is the philosophy behind FoxyHome and projects such as 5 Knight Street. Unlike traditional developers whose business model often begins by purchasing a homeowner's property, FoxyHome starts with a different question:
What if the homeowner could participate in the value being created instead of simply selling it to someone else?
Through our one-stop approach, we help homeowners evaluate their property's potential, navigate design and approvals, manage construction, and ultimately transform underutilized land into modern income-producing housing. Our objective is simple: help homeowners stay in their community while unlocking the hidden value already sitting beneath their feet.
Located across from one of Toronto's major healthcare institutions, 5 Knight Street shows where smart density belongs: close to employment, transit, services, and existing infrastructure. Instead of forcing healthcare workers and young professionals into long commutes, housing can be created where people actually need to live. This is not growth that overwhelms a neighbourhood. It is growth that strengthens it.
The Missing Middle is powerful because it aligns interests. Homeowners gain income and flexibility. Residents gain access to established communities. Municipalities gain housing supply without relying only on towers. Neighbourhoods gain renewal without losing their character. Housing is not just about buildings. It is about people.
Toronto does not have a housing shortage because it lacks land. It has a housing shortage because too much existing land is underused. The opportunity is already sitting quietly on streets across the city.
At FoxyHome, we believe the best developments are not measured only by the number of units created. They are measured by the number of lives improved.
For homeowners like Joe and Maria, the Missing Middle offers something far more valuable than a sale price. It offers a choice. A choice to stay. A choice to generate income. A choice to strengthen a family legacy.
That is the future FoxyHome is working toward.
Not bigger cities. - Better communities. - One property at a time.
For more information contact….
Carlos Jardino
Founder, www.FoxyHome.com by PCM Inc.
Keep Your Home. Grow Your Income. Strengthen Your Legacy.
EMail: Carlos@PCMnow.com Missing Middle: www.FoxyHome.com Rentals: www.FoxySuites.com
Canada: +1 (416) 414-6577 Roaming World-wide
THE APARTMENT GROUP
Together the team has completed over 1,500 transactions and has sold over $8.0 billion in apartments and development land. Put us to work for you and see the results. NO ONE has sold more buildings than our group. Experience, knowledge and professionalism will insure you get the right deal or the highest price if you are selling.
The Apartment Group is a dedicated team of professionals specializing in the sale of multi-residential investment properties. With over 40 years of combined experience, the team brings together their strengths including strong negotiation and sales skills along with highly technical market analysis and appraisal methods.
We are a boutique Brokerage but have the capabilities of the larger houses without the overhead. We have: an internal database of over 10,500 active apartment and land Buyers; a list of all apartment building owners in the Greater Toronto Area; our web site gets over 50,000 hits a month; we highlight properties for sale through our newsletter which reaches 10,000 investors monthly.
MITCHELL CHANG
President & Owner,
Salesperson
Direct: 416-219-0436
mchang@cfrealty.ca
LORENZO DIGIANFELICE, AACI
Broker of Record, Owner
Direct 416-417-9098
ldigianfelice@cfrealty.ca
JAKE RINGWALD
Salesperson
Direct 416-996-7713
jringwald@cfrealty.ca
