A sign of slowing new home construction: builders buying less land

Ontario’s homebuilders have slashed purchases of new land for future residential developments in another sign that new home construction is slowing fast, according to new data.

Altus Group data shows that in 2024 more than $3.35-billion was spent on 296 deals for residential land development in the greater Toronto area, down 15 per cent from the 349 deals in 2023 with the dollar volume falling 18 per cent from that year’s $4.13-billion in sales. There is an even steeper drop when measured from the recent peak of 2021, which saw 549 deals (46 per cent higher than 2024) for $8.41-billion (60 per cent higher than 2024).

“The overall capital market investment activity is down, but particular land because of what’s happening with housing sector and especially with the low sales volume that we’re having for the past 18 to 24 months,” said Ray Wong, Vice President of Data Solutions for Altus Group who noted that the Toronto region – once the engine of the province’s new home-building activity – has seen the sharpest drops.