Toronto, the largest city in Canada and one of the fastest growing in North America, is facing a major construction and housing crisis. As cranes dot the skyline and housing demand soars, the city still struggles with sky-high real estate prices, soaring rents, and slow infrastructure development. The problem isn’t just about demand, it's deeply rooted in construction bottlenecks, regulatory delays, and the underutilization of Canada’s domestic manufacturing strengths.

Construction Delays Are Holding Toronto Back

Toronto’s infrastructure and housing development have long been plagued by:

Permitting and zoning delays that stretch projects over years.

Skilled labour shortages and supply chain disruptions.

Overreliance on imported materials, including steel, glass, and prefabricated components.

Outdated building approval processes that don’t match the city’s explosive population growth.

The result? Slower housing delivery, increased developer costs, and ultimately higher prices passed on to renters and buyers.

Canada’s Untapped Strength: Local Steel & Manufacturing

One of the most under-discussed solutions is the strategic use of Canadian-made materials, especially steel, concrete, lumber, and prefabricated housing components. Canada has a robust steel industry centered in Ontario and Quebec, capable of producing high-quality structural steel for both commercial and residential buildings.

Benefits of Local Material Usage:

Faster delivery times and less dependence on global shipping delays.

Job creation in domestic manufacturing and processing sectors.

Lower carbon footprint due to reduced transportation.

Stabilized costs when global prices for materials fluctuate wildly.

By working more closely with Canadian steel producers like Algoma Steel, Stelco, and other regional manufacturers, Toronto can reduce its reliance on expensive imports while supporting the national economy and making construction more efficient.

Real Estate and Rent: How Toronto Compares Globally

Toronto’s housing market has become one of the least affordable in the world, relative to income. According to 2025 housing price indices:

 Affordability rank based on price-to-income ratio (2025 global housing index)

While Toronto isn’t yet the most expensive, its wage-to-housing cost gap is growing faster than many of its global peers. Renters are being squeezed out of the downtown core, and first-time buyers are increasingly priced out altogether.

Long-Term Solutions to Combat Rental Prices

 To address long-term affordability in Toronto and other major Canadian cities, a multi-pronged approach is necessary:

1. Streamline Permitting and Zoning

Governments must cut red tape. Fast-tracking multi-family housing, accessory dwelling units (ADUs), and mid-rise developments along transit corridors can boost supply quickly.

2. Use Domestic Supply Chains

Encourage developers to source Canadian materials, especially steel and prefab panels, which can reduce costs, minimize delays, and stimulate local economies.

3. Scale Modular and Prefabricated Housing

Support Canadian prefab and modular housing companies to deliver rapid-deployment housing solutions—especially for rentals and affordable units.

4. Public-Private Partnerships (P3) 

Governments can team up with the private sector to develop mixed-income communities, where part of the development is set aside for below-market housing.

5. Build Transit-Oriented Communities

Encouraging high-density housing around new subway and LRT lines ensures more people can live without a car, while reducing infrastructure costs per household.

6. National Housing Fund & Incentives

 Expand Canada’s Housing Accelerator Fund to reward municipalities that hit building targets and build rental housing, not just luxury condos.

Conclusion

 Toronto’s construction and housing affordability problems are complex but solvable. By leveraging Canada’s domestic steel and manufacturing capacity, cutting regulatory red tape, and investing in innovative housing models, Toronto can chart a new path. The city must learn from its global peers—but also play to its national strengths, creating a more sustainable, inclusive, and affordable future for all Canadians