Toronto currently has an enormous amount of housing being built. CMHC reported that 91,584 housing units were under construction in the Toronto area in August 2026. That sounds like great news for anyone hoping more supply will eventually make housing easier to afford.
But the numbers reveal something more interesting. Toronto had 19,516 approved units waiting to start construction, up 9.2% from July, while the number of homes actually under construction declined slightly. Across Ontario, the broader trend in housing starts also weakened in August.
That gap matters because an approved home is not the same as a home being built. Financing costs, weak pre-construction sales, construction expenses, and market uncertainty can all delay projects. If too many approved projects remain on paper instead of moving into construction, Toronto could eventually face another supply shortage.
For today's buyer, this does not mean prices are about to jump. There are still tens of thousands of units moving toward completion. But someone planning to buy two or three years from now should pay attention to what is entering the pipeline today — because that is what will determine how much choice exists later.
For sellers and investors, the same story works in reverse. If fewer new projects eventually reach completion, existing homes may face less competition from brand-new inventory. Toronto has plenty being built today, but the more important question may be whether enough new projects are replacing them for tomorrow.
Source: Canada Mortgage and Housing Corporation (CMHC), August 2026 Housing Starts and Construction Data, released September 16, 2026.