Toronto builders turn planned condo projects into rentals

A developer in Scarborough switched the first phase of a project on St. Clair Avenue East from condos to rentals. “It made more financial sense as a rental,” said Matt Young, CEO of Republic Developments.

— Matt Young, Republic Developments

Rise in Toronto-area rental starts, first half

82 %

Rental apartment starts in the Toronto area rose 82 per cent in the first half of 2026 from a year earlier, according to the Canada Mortgage and Housing Corporation (CMHC).

Condo builders need sales before construction to get financing, and buyers are wary of pre-construction units, real estate agents say. Without enough buyers, projects are cancelled or turned into rentals.

Background

Nationally, the six-month trend in housing starts rose just 0.6 per cent in September, CMHC says. Ottawa offers low-interest loans through a $55 billion program and a full sales-tax rebate on qualifying new rentals.