How developers, owners, operators and capital partners are navigating feasibility, financing, supply and the next wave of housing delivery

Toronto’s rental market is being rebuilt in real time. The condo-investor model that supplied a generation of rental housing has stalled, and CMHC now projects purpose-built rental to be the main driver of housing starts. Starts hit a record high even as the region absorbs a historic wave of completions: vacancy reached 5.4% across the GTHA in the first quarter of 2026, double its level two years earlier, asking rents have fallen for more than 18 straight months, and two months of free rent is now a standard incentive. With pricing below replacement cost in some submarkets, outside capital is taking a fresh look.