The Case for Building Through the Slowdown

Canada's housing market is catching its breath. Immigration cuts have softened demand, high construction costs persist, and some developers are hitting pause on new projects. But for London, Ontario, stopping construction now could create problems that take years to solve. Here's why the long view matters—and what it means for our local market.

The Three-to-Four-Year Reality

Large apartment projects don't appear overnight. From initial planning through approvals, financing, construction, and completion, significant developments take three to four years minimum. A project breaking ground in late 2026 likely won't welcome its first residents until 2029 or 2030.

This timeline creates a fundamental challenge: developers must build for future demand, not today's market. If construction stops whenever demand softens, we create boom-bust cycles that leave us perpetually scrambling to catch up.

Skyline, one of Canada's largest landlords with roughly 20,000 rental units, has stated publicly that they intend to keep building despite current headwinds. Their reasoning? Immigration will eventually increase again because Canada's population isn't growing fast enough naturally to support our economy and social programs.

London's Ongoing Housing Needs

Our city continues to grow. Western University and Fanshawe College attract thousands of students annually who need housing. The healthcare sector centred around London Health Sciences Centre employs thousands of workers seeking homes near their jobs. Families continue relocating from more expensive Ontario markets, attracted by London's combination of affordability, amenities, and quality of life.

These demand drivers don't disappear during temporary slowdowns. The students still arrive each September. Healthcare workers still need housing. Remote workers still want space they can't afford in Toronto.

If developers pause construction now, we'll face the same supply crunch we've experienced before—likely worse—when immigration and population growth resume their historical patterns.

The Rental Market Puzzle

London's rental market reflects broader Ontario trends that seem almost contradictory. Furnished rental prices are softening in some segments while unfurnished rents continue rising in others. Different property types, different locations, different tenant profiles—all moving in different directions simultaneously.

This complexity actually supports continued development of diverse housing types. The market needs family-friendly rentals near good schools in Oakridge or Westmount. It needs student housing near post-secondary campuses. It needs affordable options and market-rate options and everything in between.

One-size-fits-all development doesn't serve these varied needs. Thoughtful, continued construction across housing types helps London build the diverse inventory that makes neighbourhoods work.

Opportunities in the Window

Slower rent growth and softer demand create an unusual window—one that could actually help London catch up on housing supply.

For years, demand consistently outpaced construction. Every new building filled immediately, and rental vacancy rates remained stubbornly low. Some households who wanted to stay in London moved elsewhere. Others made compromises on housing quality or location they wouldn't have chosen in a balanced market.

This breathing room, however temporary, offers opportunity. Projects can be completed without the pressure of immediate sellout demands. Affordable housing initiatives can make progress. The market can absorb inventory rather than bidding up prices on scarce units.

What This Means for London Buyers and Sellers

For buyers: New construction continues to add options in areas like Talbot Village, the West 5 development, and other growth areas. Competition may be less intense than peak pandemic years, creating opportunities to purchase without the frantic bidding wars that characterized recent markets.

For sellers: Your existing home competes with new inventory, but also benefits from continued demand. Well-maintained properties in established neighbourhoods—Byron, Old North, Masonville, Wortley Village—offer character and location that new builds can't replicate.

For investors: Development decisions made today shape portfolio opportunities for years ahead. Understanding where construction continues (and where it pauses) helps identify future supply dynamics that affect rental rates and property values.

The Long View Wins

Real estate rewards patience and perspective. The developers who keep building through slowdowns position themselves to meet demand when it returns—often with less competition from those who paused.

For London homeowners and investors, the same principle applies. Market softness creates opportunity. Temporary uncertainty doesn't change the fundamental appeal of our city: affordable relative to major markets, diversified employment, strong institutions, and neighbourhoods with genuine character.

Whether you're buying, selling, or simply planning your next move, understanding these longer cycles helps you make confident decisions.

Connect with Nickey Calford at Calford & Co. Real Estate Team to discuss how London's evolving market fits your real estate goals.

Why London Developers Should Keep Building Despite the Market Slowdown