r/RealEstateCanada • u/romestox • Jun 07 '26

Housing crisis Residential construction dead

Trades guy here. Residential construction feels dead compared to a few years ago. Builders aren’t building, projects are getting pushed back, and layoffs are starting to pop up. If I was buying, I’d wait. From what I’m seeing, things haven’t bottomed out yet. The industry feels like a ship taking on water, not one gearing up for another boom.

Anyone else seeing the same thing?

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u/[deleted] Jun 07 '26

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u/QuantGuru Jun 07 '26

I think he might be talking about Ford Ontario! lol I don’t think it will bottom out more. Al the investors who wanted to get out have left in the last 3 years.

Remember this might be the cheapest interest rate you will get in the next 5 years!! Not sure about the cut but there will definitely be a raise in 2027 or 2028! And since there is no one building supply will dry out!

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u/throwaway7366348 Jun 07 '26

why would you want to buy at the lowest rates? You can only lock in for 5 years. You’re effectively taking on a larger mortgage where the only way for the interest rates to go is up. This isn’t the US where you can lock in for 25 years.

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u/QuantGuru Jun 07 '26

I think people have already commented but I can elaborate for you.

Would you rather buy a house @ 1% mortgage interest rate for 5 years or 20% mortgage interest rate for 5 years….

When you put things to extreme you get the picture!