Canadian Developers Are Sitting on a Record 18,998 Unsold New Homes

January 29, 2026

Canadian developers are holding a record number of completed new homes that still have not sold – a notable shift in a country where many projects are typically sold before completion, especially in the condo market.

New CMHC-tracked data highlighted by Better Dwelling shows completed-and-unsold inventory reached 18,998 units in December 2025, and Toronto + Vancouver account for about half of that national total. At the same time, CMHC notes it is conducting a methodology review of the unabsorbed inventory data series in Ontario, and users should interpret those figures with caution.

Completed-and-unsold inventory just hit a new national record

CMHC’s absorption and unabsorbed inventory tables (often described as “unabsorbed inventory”) track new units that are completed but not absorbed (sold). In December 2025, completed-and-unsold homes rose to 18,998 nationally, up 3.3% month-over-month and 35.5% year-over-year, setting a new record and surpassing the early-1990s peak referenced by Better Dwelling.

Toronto and Vancouver now make up about half of Canada’s unsold completed supply

The concentration is the headline. Better Dwelling’s analysis indicates 49.7% of Canada’s completed-and-unsold new homes are sitting in Toronto and Vancouver – two markets that are typically associated with tight resale inventory and resilient pricing.

Toronto: inventory climbs to the highest level since 2016

In the Toronto CMA, completed-and-unsold inventory reached 3,975 units in December 2025, up 56.8% year-over-year. Better Dwelling describes this as the highest level since April 2016, and frames it as a warning sign for demand at current price levels.

Vancouver: near-record completed-and-unsold inventory

In the Vancouver CMA, completed-and-unsold inventory reached 5,458 units in December 2025, up 35.8% year-over-year. Better Dwelling notes this is near a historical high for the region and well above longer-run norms.

Why this matters: holding costs rise, and “vacancy tax” rules are not always a quick fix

In theory, vacancy taxes are meant to discourage leaving homes empty and push supply back into the market. In practice, carve-outs and exemptions can reduce urgency for certain owners and situations, especially where units are newly built or held as inventory.

Toronto’s Vacant Home Tax includes a “vacant new inventory” exemption that can be claimed by a developer for up to two consecutive years if conditions are met. Vancouver’s Empty Homes Tax guidance also makes clear that being listed for sale is not, by itself, an exemption if the property is empty solely for that reason.

What This Signals for the 2026 Housing Market

A record backlog of completed-and-unsold new homes matters because it can change seller behavior. When carrying costs stack up and absorption stays weak, the pressure tends to show up through incentives first (credits, upgrades, assignment flexibility), then broader pricing concessions.

If this pipeline continues building while more projects complete, the balance of power shifts further toward buyers – especially in segments where investors were expected to absorb a large share of new supply.

References (APA – OHM Standard)

Better Dwelling. (2026, January 26). Canadian developers sit on record unsold homes, half in Toronto & Vancouver. https://betterdwelling.com/canadian-developers-sit-on-record-unsold-homes-half-in-toronto-vancouver/

Canada Mortgage and Housing Corporation. (n.d.). Housing market data tables – New housing absorptions and unabsorbed inventory. https://www.cmhc-schl.gc.ca/professionals/housing-markets-data-and-research/housing-data/data-tables/housing-market-data

Canada Mortgage and Housing Corporation. (n.d.). HMIP table: Inventory of completed and unabsorbed units (Homeowner + Condo) – Important notice on Ontario methodology review. https://www03.cmhc-schl.gc.ca/hmip-pimh/en/TableMapChart/TableMatchingCriteria?CategoryLevel1=New+Housing+Construction&CategoryLevel2=Inventory+of+Completed+and+Unabsorbed+Units+%28Homeowner+%2B+Condo%29&ColumnField=18&GeographyId=1&GeographyType=Country&MetType=FiftyKPlus&RowField=30

City of Toronto. (n.d.). Vacant home tax – Vacant new inventory exemption. https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/

City of Vancouver. (n.d.). Evidence and exemptions – Empty Homes Tax (Property listed for sale). https://vancouver.ca/home-property-development/evidence-exemptions.aspx

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