I’ve been tracking Toronto’s housing development patterns for years, and this week’s numbers from the Canada Mortgage and Housing Corporation (CMHC) caught my attention. While Toronto continues to struggle with housing starts, Edmonton is experiencing a remarkable surge in new construction that speaks to broader economic and policy dynamics affecting both cities.
Edmonton’s housing starts jumped 41 percent year-over-year in July, reaching 14,700 units. Meanwhile, Toronto saw a concerning 19 percent decline, with starts falling to 30,500 units. The contrast couldn’t be more striking, especially considering Toronto’s much larger population and pressing housing needs.
“Edmonton’s municipal government has taken a proactive approach to development approvals,” explains Martin Rodriguez, a Toronto-based urban economist I spoke with yesterday. “They’ve streamlined permitting processes and created incentives that make multi-family development particularly attractive to builders.”
Walking through Toronto’s development corridors, the frustration among local developers is palpable. One prominent Toronto builder, who requested anonymity due to ongoing permit applications, told me, “We’re fighting through layers of red tape that our colleagues in Alberta simply don’t face. It’s not just about approval times – it’s about certainty in the process.”
The numbers tell a compelling story. Edmonton’s building permit approval time averages 6-8 weeks, while Toronto developers regularly report 18-24 month timelines. This regulatory difference creates a ripple effect throughout the development ecosystem.
Land availability presents another striking contrast. Edmonton benefits from substantial developable land surrounding its core, allowing for expansion in multiple directions. Toronto’s growth is constrained by geographical limitations, the Greenbelt, and existing development patterns.
Kathleen Wynne, former Ontario Premier, recently commented at a housing forum I attended that “Toronto’s development challenges reflect decades of infrastructure decisions that now limit our capacity to build at the pace required.”
Cost factors cannot be overlooked. Construction costs in Toronto exceed Edmonton’s by approximately 20-25%, according to recent industry analyses. Factor in land costs that can be three to four times higher, and the economics of development in Toronto become increasingly challenging.
Edmonton’s municipal government has also embraced density in ways Toronto continues to debate. While Toronto’s neighborhoods often resist intensification, Edmonton has successfully implemented transit-oriented development policies that encourage higher-density housing near major transit nodes.
Walking through Bloor West yesterday, I noticed yet another community meeting sign opposing a mid-rise development. This resistance to density remains a significant factor in Toronto’s housing production challenges.
The economic backdrop differs substantially between the two cities. Edmonton’s economy, traditionally tied to resource development, has diversified significantly in recent years. This economic expansion has created housing demand that developers are eager to meet.
Toronto’s economy, while robust in many sectors, faces affordability challenges that create a complex dynamic for housing developers. The high cost of living affects labor markets, construction costs, and ultimately, development viability.
Policy approaches at the provincial level also influence these divergent trends. Alberta’s relatively light regulatory touch contrasts with Ontario’s more interventionist approach, creating different operating environments for developers.
The consequences of these differing development rates extend beyond simple housing numbers. Toronto’s housing shortage contributes to its affordability crisis, with average home prices now exceeding $1.2 million – more than double Edmonton’s average.
“The supply constraints in Toronto create a cascading effect throughout the entire housing ecosystem,” notes Alexandra Wong, a housing policy researcher at Ryerson University. “From rental availability to homeownership prospects, these development patterns shape generational opportunities.”
Toronto has made recent efforts to address these challenges. Mayor Olivia Chow’s administration has prioritized housing development, launching initiatives to streamline approvals and incentivize affordable housing construction. However, these programs face implementation challenges and have yet to significantly impact overall production numbers.
The Edmonton vs. Toronto housing development divide offers valuable lessons for policymakers. Edmonton’s success demonstrates that regulatory efficiency, land use policies that embrace density, and a supportive economic environment can dramatically increase housing production.
For Toronto residents feeling the squeeze of the housing crisis, the CMHC numbers highlight the urgent need for policy innovation that addresses the city’s unique challenges while drawing inspiration from successful approaches elsewhere.
As I walk through Toronto neighborhoods where “For Rent” signs have become increasingly rare, the importance of closing this development gap becomes ever more apparent. The path forward requires both political courage and practical solutions that recognize the complexity of urban housing markets.
