The City of London’s 2025 Annual Development Report and Q4 building services report shows a record-breaking year for residential development, including the highest number of housing units ever approved through building permits.

The city issued building permits for 5,462 new housing units last year. That figure represented a 48-percent increase over 2024 and the highest annual total of all time. Total building construction value reached $2.71 billion across all sectors, including residential, commercial, industrial, and institutional development. That figure is 23 percent higher than last year’s record – and the highest annual total in the city’s history.

Since 2022, city council has approved a total of 51,434 new housing units, exceeding its housing pledge of 47,000 units.

“Breaking these records did not happen by accident. This report reflects the deliberate, targeted improvements to our approval processes that ensure London responds to the housing challenge effectively,” said Mayor Josh Morgan. “We are approving more homes than ever, surpassing provincial targets, getting shovels in the ground faster, and planning responsibly to deliver more homes for Londoners.”

Growth in 2025 was driven primarily by medium- and high-density housing, with apartments and other multi-unit dwellings accounting for 82 percent of all residential units approved through building permits. High-density housing was the primary driver of growth, with 3,980 units delivered, surpassing the historical annual totals across all housing types observed over the past 10 years.

“Process improvements played a key role in supporting this growth,” said Scott Mathers, Deputy City Manager of Housing and Community Growth. “By streamlining approvals and reducing processing timelines, particularly for minor zoning amendments and other key application types, we are helping projects move faster from application to construction while still meeting legislative requirements and supporting quality development.”

The report also tracks continued progress on affordable housing. Since the launch of the city’s Roadmap to 3,000 Affordable Units Plan in late 2021, a total of 2,576 city-funded affordable housing units have been tracked, an increase of 437 units since the end of 2024.

Including non-city-funded projects, more than 3,300 affordable housing units have been constructed or are underway in London since 2021.

Additional residential unit activity continued to grow over the past five years, with 487 units approved in 2025 (up 12% year-over-year).