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Toronto’s $70M Shortfall Just Got Real
Toronto faces a $70M tax gap as home sales slow, Ontario's builds stall, and mortgage renewals loom large across Canada.
Today, we’re covering
📉 Toronto’s $70M Housing Tax Shortfall
🚧 Ontario’s Homebuilding Engine Stalls
😔 33% of Mortgages Will Face Payment Shock by 2026
🎓 RECO Expands Real Estate Education Options
🤔 WTF of The Week
Read Time: 4 minutes
📉 Toronto’s $70M Housing Tax Shortfall
Toronto is projecting a $70 million shortfall in Municipal Land Transfer Tax revenue for 2025.
The deficit is caused by a decline in home sales, resulting in far fewer transactions than anticipated in the city’s budget.
Even with contingency measures, the city still expects to end the year $20 million in the red.
While sales were down only 2.4% year-over-year in June, the broader trend indicates a longer slowdown, with 2024 already weaker than 2023.
Why This Matters: Toronto’s real estate downturn isn’t just hitting homeowners and developers; it’s hitting the city’s bottom line. With fewer sales comes less tax revenue, which could lead to cuts or delays in city services. The slowdown also shows how closely municipal finances are tied to a booming housing market that may no longer be dependable. (source)