Declining interest rates not enough to revive Ontario’s rental apartment construction

The Canada Mortgage and Housing Corporation reports a 13% decline in total housing starts in the Toronto area in early 2024 compared to 2023, with rental apartment starts falling by 40%, particularly in Toronto where they dropped by half. High financing costs and declining rents are making rental developments unviable. Although apartment completions increased slightly, overall housing starts remain close to historical averages, insufficient to meet demographic demand. Policy changes are suggested to stimulate rental housing development.