An Ontario association is warning that if governments introduce measures to reverse new housing sales in many of the province’s key markets, there could be serious consequences for the residential construction sector.

The Building Industry and Land Development Association (BILD), which represents more than 1,000 residential builders, developers and renovators across the Greater Toronto Area, says home sales in several parts of the province, including the GTA are reaching historic lows. The effects of this could put many residential construction workers out of work.

According to data from Altus Group, there were 300 new home sales in the GTA in August. That figure is 42 percent lower than a year ago, and 81 percent below the 10-year average for the market. Historically, new home sales for a typical August in the GTA would be 1,595 units based on the previous 10-year average.

“GTA new home sales in August 2025 remained at rock bottom levels. New launches, in particular high-rise projects, over the past 12 months have been at a record low and at the same time, completions have reached a record high,” said Edward Jegg, Research Manager at Altus Group. “As further projects reach completion, new home tradespeople are becoming increasingly at risk of not being able to find employment and therefore joining the growing number of Canadians without work, putting additional strain on the economy.” 

Data are similar for condominium apartments, including units in low, medium, and high-rise buildings and stacked townhouses. Those developments accounted for 118 units sold in the GTA in August, down 59 percent from August 2024 and 90 percent below the 10-year average.

At 182 units, single-family home sales in the GTA in August were down 21 percent from August 2024 and 59 percent below the 10-year average.

BILD says total new home remaining inventory in the GTA decreased slightly compared to the previous month, to 22,245 units. This includes 16,447 condominium apartment units and 5,798 single-family dwellings. This represents a combined inventory level of 20 months, based on average sales for the last 12 months – which is the highest inventory level seen to date.

“With pre-construction inventory dropping dramatically, the signs are clear that the new residential sector in the GTA is basically stopping,” said Justin Sherwood, Senior Vice President of Communications, Research, and Stakeholder Relations at BILD. “Greater Vancouver is seeing a third of its normal activity and will be soon in a similar place, many other Ontario markets like Ottawa and the Kitchener-Waterloo area are struggling, and we are now seeing even some troubling signs in Calgary. Why is the government ignoring these obvious warning signs?”

Sherwood says the federal government’s goal of building 500,000 new homes annually is increasingly out of reach, and projects that builders will struggle to keep a pace of even 200,000 starts annually.

“Due to layoffs and a drought in future housing supply, residential construction workers and hardworking families looking to find a home in the 2027-2031 period will be the ones that bear the brunt of inaction,” he said.

BILD is calling upon the federal and provincial governments to temporarily suspend the GST on all new homes under $1 million, for rapid implementation of provincial development charge reforms, and for municipalities to lower the fees and charges they add to new homes.

The building and renovation industry provides 256,000 jobs in the region and $39.3 billion in investment value.