Ontario Pre-Construction Market Note: August 2026

Ontario Pre-Construction Market Note — August 2026

This week delivered three signals for Ontario pre-construction buyers: a major federal-municipal housing deal in Toronto, a steady rate backdrop, and a reminder that national new-construction activity is softening. Here's the factual round-up, plus what we're currently tracking on LIQWD.

A new Toronto rental-housing partnership

On August 5, the City of Toronto and the federal government announced a partnership to accelerate housing supply. <cite index="16-1">Toronto is receiving up to $2.7 billion to accelerate housing supply and support new purpose-built rental housing.</cite> Per industry coverage, <cite index="18-1,18-2">the two governments will invest over $2.7 billion over the next three years to build more than 18 housing projects, delivering more than 5,600 new rental homes, with shovels in the ground on more than 4,500 homes before the end of this year.</cite>

The rationale points to a financing gap, not an approvals gap. <cite index="19-6,19-7">In Toronto, thousands of new homes have already been planned, permitted, and approved, but lack the financing to begin construction; the partnership is intended to unlock these projects and start building.</cite> Because the focus is purpose-built rental, the impact on condo pre-construction inventory is indirect—but more construction financing and shovels in the ground matter for the broader supply picture.

Tax relief still in play for new-home buyers

Buyers weighing a new build should keep the earlier federal-Ontario tax measures in view. <cite index="22-9,22-10">The full 13% HST is being removed for new homes in Ontario valued up to $1 million, saving buyers up to $130,000; that maximum rebate is maintained for homes valued up to $1.5 million, then decreases proportionally to a maximum of $24,000 for homes valued at $1.85 million and above.</cite> <cite index="22-11">This would apply to eligible agreements signed between April 1, 2026, and March 31, 2027.</cite> The provinces and Ontario also agreed to <cite index="22-1">cost-match a total of $8.8 billion over 10 years focused on housing-enabling infrastructure projects</cite> to lower development charges.

Rates: a steady hand for now

The financing environment has held steady. <cite index="6-1">The Bank of Canada held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%.</cite> That July 15 decision marked <cite index="2-3">a policy interest rate hold for a sixth consecutive time.</cite> <cite index="6-2">The next date for announcing the overnight rate target is September 2, 2026.</cite> We don't forecast rate moves—plan around your own qualifying rate and budget.

Construction data: national softness, mixed by city

New supply is trending down. <cite index="10-12">The six-month trend in housing starts was down in June compared to May, with a decrease of 2.8% to 248,123 units, according to CMHC.</cite> <cite index="12-14,12-15">Actual housing starts were down 13% year-over-year in centres with a population of 10,000 or greater—20,265 units in June 2026 compared to 23,292 units in June 2025.</cite> Toronto bucked the trend on the month: <cite index="12-19">Toronto starts increased 25% due to higher multi-unit starts.</cite> The next data point: <cite index="8-10">CMHC will release the July housing starts data on August 18.</cite>

What we're tracking on LIQWD (as of August 10, 2026)

These are our platform's tracked active listings, not the whole market:

• Toronto: 121 active projects (9 newly listed in the last 30 days), starting prices from $1,901.
• Old Toronto: 47 active projects (0 new in 30 days), from $350,990.
• Brampton: 55 active projects (2 new), from $419,990.
• Mississauga: 54 active projects (0 new), from $390,900.
• Markham: 41 active projects (1 new), from $661,990.
• Richmond Hill: 40 active projects (0 new), from $399,990.
• Oakville: 37 active projects (2 new), from $389,900.
• Miami: 55 active projects (16 new), from $300,000.

Toronto and Miami showed the most new-listing activity on our platform over the past 30 days; several York Region and Peel markets saw no newly listed projects in that window.

The bottom line

This week's policy signal is government financing aimed at unlocking approved-but-stalled projects, alongside a stable rate and an HST rebate window running to March 31, 2027. National starts remain soft while Toronto's multi-unit starts rose in June. As always, verify rebate eligibility against your own purchase agreement and closing timeline, and stress-test your budget rather than counting on future rate moves. This note is informational and not a promise of any outcome or return.

Sources

• https://www.toronto.ca/news/city-of-toronto-government-of-canada-announce-new-partnership-securing-up-to-2-7-billion-to-build-new-homes/
• https://www.renewcanada.net/feds-toronto-announce-new-partnership-securing-up-to-2-7b-to-build-new-homes/
• https://www.pm.gc.ca/en/news/news-releases/2026/08/05/government-canada-and-city-toronto-build-thousands-new-rental-homes
• https://www.pm.gc.ca/en/news/news-releases/2026/03/30/prime-minister-carney-secures-new-partnership-ontario-cut-taxes
• https://www.bankofcanada.ca/2026/07/fad-press-release-2026-07-15/
• https://www.nesto.ca/mortgage-basics/bank-of-canada-interest-rate-schedule/
• https://www.newswire.ca/news-releases/housing-starts-and-construction-data-for-june-2026-882510300.html
• https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-data/data-tables/housing-market-data/monthly-housing-starts-construction-data-tables
• https://www.cmhc-schl.gc.ca/media-newsroom/news-releases/2026/housing-starts-june-2026