GTA Housing Market Tightens as Inventory Contracts in August
The Greater Toronto Area (GTA) housing market experienced a notable contraction in available home inventory in August 2026. While sales edged slightly lower due to reduced selection in key neighbourhoods, tightening market conditions and heightened buyer competition are laying the groundwork for potential price stabilization and renewed growth.
“The number of homes available for sale in August 2026 was down noticeably compared to last year in the Greater Toronto Area (GTA). Following this trend, home sales also edged lower, as the number of transactions was arguably limited by less choice in some neighbourhoods. Less choice and more competition between buyers could ultimately result in renewed price growth in the months ahead.” — Toronto Regional Real Estate Board (TRREB)
Key Market Statistics for August 2026
Sales Volume: Total home sales across the GTA reached 5,057, marking a modest -2.1% decrease year-over-year.
New & Active Listings: New listings entered into the MLS® System dropped -14.1% year-over-year to 12,075, while active listings decreased -11.3% to 24,482.
Average Selling Price & HPI Benchmark: The overall average selling price came in at $993,410, down -2.7% compared to August 2025. The MLS® HPI Composite Benchmark decreased -4.5% year-over-year, though it remained flat on a month-over-month seasonally adjusted basis.
Sales Volume: Condominium apartment sales reported through TRREB's MLS® System reached 4,783 units in Q2 2026, marking an +8.8% increase year-over-year.
Supply Dynamics: The quarterly figures point to absorption picking up pace as inventory adjustments continue across the GTHA apartment sector.
Lease Transactions: Condominium lease transactions hit a record high of 18,923 units in Q2 2026, climbing +5% compared to the previous year. Over the first half of the year, total leases reached 34,150, an +11% annual increase.
Market Tightness & Rents: Growth in rental demand outpaced listings for the fourth consecutive quarter. Active condo rental listings dropped -13% year-over-year to 5,366 units, compressing months of supply down to 0.9 months. Average condo rents edged up 2.5% quarter-over-quarter to $3.74 psf ($2,545 for 681 sq. ft.), with annual declines narrowing to just -1.3%.
Purpose-Built Rentals: Purpose-built rental construction surged, with 6,291 units starting construction in the first half of 2026 (a +50% jump). Purpose-built face rents averaged $4.05 psf ($2,864 for 707 sq. ft.), with net rents averaging $3.51 psf after accounting for incentives offered at roughly 64% of projects.