New Construction Outlook for 2026

A pivot from high-rise condos to mid-rise and ground-oriented (townhomes/detached) projects is expected, aligning with current demand and financing realities. Improved affordability (lower prices/rates) and rising inventory are creating strategic opportunities for buyers, boosting confidence and anticipated sales activity. Slower population growth (due to immigration changes) and economic headwinds may temper demand, but infrastructure spending offers good support.  Construction material  prices are expected to rise just moderately in 2026, with most forecasts projecting 2% to 4% inflation, far below the volatility seen earlier in the decade.   Development costs and taxes remain hurdles, impacting project viability for many GTA projects.