Rental starts rise while condo builds fall

Canada is building far more rentals than condos these days.

According to a new Desjardins report, rental housing starts reached roughly 130,000 units over the past four quarters, while condo starts slipped below 50,000 units for the first time since the 2009 recession.

The report says higher interest rates eroded affordability and pushed up financing costs for both buyers and developers, causing many investors to retreat from the condo market.

At the same time, government financing programs and the removal of GST on new rental construction have made purpose-built rental projects more attractive.

Perhaps the most telling sign of the market's changing priorities is the dramatic rise in condo-to-rental conversions.

Before 2024, just seven condo projects in the GTA were converted into purpose-built rentals over a 10-year period. Since then, the pace has accelerated dramatically: Between 2024 and Q1 2026, 4,064 of 11,424 cancelled condo units were repurposed as rentals.

For real estate professionals who focus primarily on condo sales,  following the market is a serious option. With rental projects accounting for an increasing share of new housing development, property management offers a natural way to capitalize on that growth.

It's an opportunity to build a more resilient business, deepen client relationships, and position your business for where the market appears to be heading next.