PropTech and ConTech Can Help Industry Move Forward

At a time when we need to dramatically accelerate homebuilding, a new report released by RESCON indicates that housing starts are down and job losses in the industry continue to grow.

The findings are truly disturbing. Condo apartment starts in 2025 were down a whopping 52 per cent in Ontario relative to the 2021-24 averages, while ground-oriented housing starts declined 43 per cent.

Job losses in the residential construction industry continued to mount in 2025, with 46,562 fewer person years of employment compared to the 2021-24 averages. The negative employment impacts are most severe in the Toronto area but are worsening in other regions as well.

High taxes on new home construction, including development charges which have risen by more than 5,000 per cent in 25 years in some municipalities, are the primary drivers of lower home sales.

To help revive the market, governments must do more to bring down the cost of building a new home. Taxes, fees and levies account for 36 per cent of the cost of a new home – much too high.

The sector also cannot continue to rely on yesterday’s building methods. Embracing PropTech and ConTech is no longer optional – it is essential.

For decades, construction has lagged other industries in efficiency gains. While the manufacturing sector has doubled productivity over the past half-century, construction has stagnated.

The reasons are well known: fragmented workflows, paper-based processes and a reliance on manual labour. But they are no longer acceptable. ConTech tools such as Building Information Modeling (BIM), robotics and advanced analytics are finally offering a path forward.

BIM is transforming how projects are conceived and delivered. By creating detailed, 3D models, architects, engineers and contractors can collaborate in real time, identifying design conflicts before they reach the job site. The result is fewer change orders, tighter timelines and better outcomes. In an industry where time is money, that kind of foresight is invaluable.

Beyond design, robotics and automation are beginning to reshape construction itself. Machines capable of bricklaying at several times human speed or drones that conduct site inspections are not science fiction – they have become operational realities. These technologies reduce human exposure to dangerous tasks and significantly improve accuracy.

Wearable devices, such as smart helmets and vests, can monitor worker health and environmental conditions, helping prevent accidents before they occur. In a sector historically plagued by safety incidents, that shift alone justifies rapid adoption.

The financial case is equally compelling.

ConTech innovations like modular construction and 3D printing can reduce material waste by up to 90 per cent and lower overall project costs by as much as 30 per cent. Offsite manufacturing, where building components are produced in controlled environments and assembled on location, is gaining traction. It shortens construction timelines, improves quality control and mitigates labour shortages – three challenges that hinder housing delivery.

But the transformation does not end when construction is complete. This is where PropTech comes into play, extending the digital lifecycle of buildings well beyond occupancy. Through Internet of Things (IoT) sensors and artificial intelligence-driven analytics, property managers can monitor energy usage, air quality and occupancy patterns in real time, which reduces costs.

The environmental implications are profound. Buildings account for 40 per cent of global carbon emissions. PropTech provides the tools to optimize energy systems and extend the life of building components.

Perhaps the most powerful concept emerging from the convergence of PropTech and ConTech is the continuous digital thread. Technologies such as digital twins – virtual replicas of physical buildings – allow stakeholders to track performance from initial design through to long-term operations. This eliminates the traditional silos between planning, construction and management. Problems can be anticipated rather than reacted to, and efficiencies can be unlocked.

Firms that adopt these technologies are seeing measurable improvements in project economics. But the benefits extend beyond balance sheets.

In spite of the promise, though, adoption of PropTech and ConTech remains uneven. Many firms, especially smaller builders, face barriers such as high upfront costs and lack of technical expertise.

While industry leaders must be willing to invest, experiment and collaborate, governments must play a more active role in accelerating adoption of PropTech and ConTech through targeted incentives, standardized and integrated digital frameworks and investment in infrastructure.

The stakes could not be higher. Canada faces a housing crisis that demands unprecedented levels of construction.

PropTech and ConTech represent the most powerful set of tools the industry has to build faster, cheaper and more sustainably. The construction sector can embrace this transformation and position itself for the future or it cling to legacy practices and fall further behind.

Standing still is simply not an option.