Canada Mortgage and Housing Corporation (CMHC) released its Fall Housing Market Outlook report for the Greater Toronto Area (GTA) noting that home starts are set to increase by almost eight per cent to 36,000 units in 2015 before moderating to 34,750 units in 2016.

The majority of starts will consist of high rise units in both years but single-detached homes will also see higher growth in 2015. Existing home sales will top 96,000 units in 2015 and 92,000 in 2016. Marginally rising supply of new listings will keep the resale housing market balanced over the next two years.

“Due to stronger sales of pre-construction condominium apartment units, which began trending up from mid-2013 onwards, high rise starts will increase over the next couple of years,” explained Dana Senagama, CMHC’s Senior Market Analyst for the GTA. “Lower price points and an increased appetite among millennials wanting to live an urban lifestyle continue to fuel higher condominium apartment sales and in turn apartment construction.”