Q1 2026 Residential Land Report
Market Overview
The residential land market showed cautious signs of stabilization in Q1 2026, but activity remained highly selective. Resale pricing softened, borrowing-cost uncertainty continued to affect buyer confidence, and new home sales stayed well below prior-cycle highs. At the same time, lower pricing, modestly improved affordability and new government housing incentives began to pull some buyers back into the market.
Land Market Activity
Land buyers remained cautious, focusing on serviced, lower-risk sites with clearer approval and revenue certainty. Policy support may help improve feasibility, but broad land demand has not yet returned.
Notable Transactions
The largest GTA transaction in the report was 8240 Britannia Road in Milton (106.9 acres, $115.0 million). Other notable GTA transactions included 6743 Cochrane Street in Whitby (268.9 acres, $36.7 million), Woodbine Avenue and Russell Dawson Road in Markham (5.9 acres, $31.7 million) and 26 and 27 Grenville Street in Toronto (1.0 acre, $30.0 million). In the GGH, 361 Whitelaw Road in Guelph sold for $21.0 million (18.1 acres).
Low-Rise and Ground-Oriented Land
Low-rise activity improved from 2025 lows, led by townhome demand in stronger GTA submarkets. Affordability remains a constraint, but well-priced ground-oriented projects are still absorbing.
Resale Market Influence
Softer resale pricing is resetting land value expectations across the GTA and GGH. Buyers remain active but price-sensitive, which limits upward pressure on land values.
Policy Context
Housing policy shifted sharply in the quarter. Federal and provincial measures set out to remove the full 13% HST on eligible new homes valued up to $1 million, with partial relief up to $1.85 million, from April 1, 2026 to March 31, 2027. On March 26, 2026, the federal government introduced Bill C-26, authorizing $1.7 billion in payments to provinces and territories for measures that increase housing supply, including lower development fees on new construction.
Looking Ahead
The next phase of the market will be driven by buyer confidence, development-cost relief and the ability to finance projects through slower absorption periods. If launches remain muted through 2026, the GTA and broader Greater Golden Horseshoe may face a thinner completion pipeline in 2027 and 2028, just as demand begins to recover.
For further reading: Download the Q1 2026 Residential Land Report (PDF)
This report reflects information available at its release on May 11, 2026.
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