The Missing Middle with Mike Moffatt and Sabrina Maddeaux The $6.6 Billion Housing Disaster Politicians Won’t Talk About
Jul 16, 2025
Toronto's housing market is facing a crisis, with new condo sales plummeting 97% since 2021. This decline could cost $6.6 billion in lost tax revenue and lead to significant job losses in the construction industry. The hosts discuss the need for tax cuts, like eliminating the GST on new homes, to boost construction without increasing prices. They also debate the role of foreign buyers and international students in the recovery process, highlighting the delicate balance between investment and affordability.
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Toronto's Housing Sales Crash
- Toronto's new home sales plunged 97% since 2021, with only 42 condos sold in one month.
- This collapse signals a frozen housing market and significant economic ripple effects in the GTA.
$6.6 Billion Annual Tax Loss
- The decline in housing sales could cause governments to lose $6.6 billion annually in tax revenue.
- This loss includes development charges, land transfer taxes, and income taxes linked to home construction.
Housing Starts Lag Sales Decline
- Housing starts are a lagging indicator reflecting market conditions from 2-3 years ago.
- The current drop in sales foreshadows a sharp decline in future housing starts.