b'CONSTRUCTION PRIORITIES: THE SKILLED LABOUR SHORTAGEby high interest rates. As a result, projects that were viable are no longer looking good to proceed and are put on holdor paused. TD ECONOMICS FORECASTS THAT, NATIONALLY, STARTS According to a recent report by Urbanation, 60 new projects totalling more than WILL CONTINUE TO DECLINE THROUGH THE REMAINDER 21,000 units in the Greater Toronto and Hamilton Area have been put on hold OF THIS YEAR, REFLECTING MORE RECENT WEAKNESS IN indefinitely. New condominium sales in the region in the first three months of 2024 PRE-SALE ACTIVITY IN KEY MARKETS LIKE TORONTO. hit their lowest quarterly total since the depths of the global financial crisis in early 2009. Outside of that brief period in early 2009, new condominium sales havent been this low since the late 1990s.off track from hitting its housing targets.These factors play into the slowdown forExperts also think while sales and starts A housing study found that the numberdevelopers and buyers and have put ahave declined, the housing supply is of new homes built in the GTA is lagginglarge number of housing projects falling, and housing affordability is a significantly behind population growth. on pause. major issue. They feel the slowdown in the residential market is going to get worse From a statistical standpoint, the newNO RELIEF IN SITE before it gets better.construction RHR starts in 2024 areResidential experts do not see anyWHAT NOWcomparable to 2018. An example is insigns that the slowdown in homeTo sum up the concern about the April 2024, when starts dipped to 5,589construction will take an abrupt turn inunderutilized workers in the GTA as versus homes, which was fewer than the startsthe near future. CMHC has noted thatother parts of the country, we have to look in April 2018. Starts in urban areasthe forecast for new home constructionat the significant market share that high-dropped 37 per cent compared to Aprilin 2024 in southern Ontario is grim.rise residential has in the GTA region, 2023, according to CMHC. The largestAnd this concern is not just for Ontario.said Mollenhauer. Yes, we have a labour part of this decline came from multi-unitTD Economics forecasts that, nationally,shortage across the country that is being residential projects. starts will continue to decline throughincreased by immigration policies that run the remainder of this year, reflectingcounter to the needs of the construction Factors that seem to be weighing on thismore recent weakness in pre-salesector. However, this slowdown in the GTA downturn include: activity in key markets like Toronto,driven by the high-rise residential sector is elevated construction costs and highan anomaly created by interest rates. High interest rates for purchasinginterest rates.and financing new projects, reducingWhen interest rates will decrease investment and generally reducingThis is a twofold problem involvingenough to turn around the slowdown demand for new housing projects; developers and buyers when the keyand get residential trades back to work factor is interest rates driving thisis anybodys guess at this time. It seems Uncertainty in the market, whichslowdown. Higher costs for mortgages2024 and 2025 will not see relief from themakes investors cautious; and reduce demand, and higher interestslowdown. So according to experts, the rates increase costs for developers. Theindustry is going to have to wait until 2026 Affordability of housing and thedeveloper-positive home building seenbefore seeing the GTA return to a morerising cost of construction materials. in 2021 and 2022 has been dampenednormal RHR market.BUILDERSDIGEST Quarter 4202425'