Why Small Towns and Cities Will Be The Focus of Canada's Next Housing Boom

By now we’ve all heard the news, Canada’s big cities, and indeed it’s biggest province, is in a bit of a housing slump. Despite years of promises to construct new homes at a pace never seen before, Ontario continues to lag in new housing starts and construction value. While the media reports a bleak outlook on housing starts, I would like to offer a more nuanced and optimistic view of housing and present a potential opportunity.

 Housing prices, housing starts, and especially condo prices in Toronto are falling at record rates. New condominium apartment sales declined for the fourth year in 2025, decreasing from 60%, and are now down 91% since the highs of 2021, according to Urbanation. Unsurprisingly, the market and financial sector in Toronto has reacted to this news by cutting the number of new projects, as well as financing. Over 7,000 new units were cancelled in Toronto just last year, and a further 2,190 units worth of development has been indefinitely frozen.

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