Toronto Condo Starts Collapse to 156 Units in H1 2026

Toronto condo construction just hit a historic stall. According to CMHC's Fall 2026 Housing Supply Report, developers in the City of Toronto broke ground on only 156 condominium units in the first half of 2026.

For context, the decade average was roughly 7,000 condo units a year. That is not a soft patch. It is a collapse in new ownership supply.

What else the report says

CMHC also notes that Toronto needs to raise its overall housing starts pace by at least 50% over the next decade (about 21,000 to 26,000 more homes a year) to get back toward 2019-level affordability. Population-adjusted starts in early 2026 were among the weakest in decades. The backlog of permitted projects waiting to break ground has fallen about 50% from its 2023 peak. Freehold ground-oriented starts remain at record lows after more than two decades of decline.

Rentals are filling part of the gap

Purpose-built rental apartment starts rose 82% in the first half of 2026 versus 2025. For the first time since 1994, rental apartment starts outpaced condo starts in Toronto. That shift matters for renters and for investors watching yield and vacancy, but it does not replace the condo pipeline buyers and first-time purchasers usually tap.

Why this matters for buyers and sellers right now

Fewer condo starts today means fewer new units hitting the market in a few years. In the near term, resale inventory and pricing still set the tone. Over the medium term, a thin construction pipeline can tighten choice again once demand recovers. If you are shopping a condo, comparing neighbourhoods, or deciding whether to list, the CMHC numbers are a reminder to plan around supply, not just last month's sold prices.

Sources: CMHC Fall 2026 Housing Supply Report; STOREYS coverage of the same report (September 14, 2026).