More than 11,500 housing units are delayed in Toronto — four times as many as last summer, report says
Sixty housing projects across the GTHA have released promotion materials then put their projects on hold since mid-2022, according to research firm Urbanation
The city has seen a dramatic increase in delayed developments, with the number of stalled preconstruction units nearly quadrupling since last summer, according to market research firm Urbanation.
A Monday news release said the firm has counted 60 projects, adding up to more than 21,505 units across the Greater Toronto and Hamilton Area (GTHA), that are delayed — meaning they were slated for launch and began releasing promotional materials but have since been put on hold.
That’s an increase from just over 8,000 delayed units across 31 condo buildings last August.
In Toronto specifically, there have been 11,595 delayed units over 29 projects since mid-2022, according to the firm’s research, up from August when the Star reported there were 2,937 delayed units at that time.
The reasons for the delays are high interest rates and lack of confidence in the market.
“Developers need to sell most of their units before starting construction … Projects are unable to attract sales at prices required by developers to earn a return,” said Shaun Hildebrand, president of Urbanation, in an email to the Star.
Outside of Toronto, Urbanation counted 1,581 delayed units in Brampton, 1,434 in Hamilton, 1,420 in Vaughan and 1,288 in Markham. The list is rounded out by Mississauga (928 delayed units), Oakville (884), Milton (728), Whitby (579), Richmond Hill (400), Clarington (365) and Newmarket (303 units).
The firm says developers drastically reduced new launches in the first quarter of 2024, with just four projects, with a total of 958 units, being brought to market.
The numbers come as no surprise to executives at CBRE Canada, who are hearing from clients that sales have slowed down, prices have flattened and construction costs have increased.
