Development activity over the past five years in Ontario has reached levels not seen since the 1970s, according to a new report from MPAC. Photo: Karen Longwell

A slowdown in new home construction may hinder Mississauga’s growth target.

Since 2024, there has been a “significant slowdown” in new residential construction and this trend is expected to continue for a few more years, Nadia Dowhaniuk, a city planner said in a report to the Planning and Development Committee this week.

The slowdown could make it more challenging to stay on track with the growth forecast in the short term, Dowhaniuk said.

The Canada Mortgage and Housing Corporation also predicts declines nationally.

“Looking ahead, national housing starts are expected to decline through 2026-2028 as developers face high costs, softer demand and elevated inventories,” the CMHC said in its spring report.

The city has developed new land use policies, financial incentives and cost-reducing solutions to boost housing market construction, Dowhaniuk said. With these strategies, residential development is expected to meet the growth forecast to 2051, she said.

In the past five years, building permits were issued for over 20,000 units, the report noted.

Over 66 per cent of these units were in areas targeted for growth.

At the same time, additional residential units (units added to a main home) played a growing role in expanding new housing supply in Mississauga’s neighbourhoods, according to the report.

Approximately 3,400 new building permits have been issued for additional residential units over the past five years.

Most of the additional units were legal basement units.

Garden suites are a relatively new type of additional residential unit in the city, and has taken time to refine the approval process.

“It did take some growing pains along the way,” said Andrew Whittemore, commissioner of planning and building for the city.

In beginning of 2026, 32 garden suites were approved.

See the full report here.


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