The Greater Toronto Area (GTA) is facing its largest housing supply gap in over 50 years, with new builds unable to keep pace with rapid population growth, according to a report from the Building Industry and Land Development Association (BILD). The report warns that the housing crisis will intensify unless decisive actions are taken. “This is a bright red warning light for all levels of government. Without bold steps, the housing crisis in the GTA is going to get far worse in the years ahead,” said David Wilkes, BILD’s president and CEO.
BILD’s latest municipal benchmarking study highlights a concerning trend of declining development applications in the region, signaling a worsening housing supply in the near future. The study also reveals that it takes an average of 20 months for new housing approvals, with each month of delay adding between $43,000 and $90,000 to the cost of a new home. On top of these delays, government fees and taxes account for nearly 25 percent of the cost of a new home in the GTA, further driving up prices for buyers.
Wilkes emphasized that high government fees and structural challenges have significantly increased construction costs. “To improve housing affordability, governments must act to accelerate approvals and reduce the overall tax burden on new home buyers,” he said. Without urgent reforms, the housing crisis will deepen, resulting in fewer housing starts, job losses, and worsened affordability in the years to come.