2025 GTA Construction Trends: A Year in Review with Imperio Construction

The year 2025 was a dynamic one for the construction industry in the Greater Toronto Area (GTA). Both residential and commercial construction saw its share of challenges and opportunities. High interest rates and economic uncertainty early in the year made many people cautious with their money, yet demand for construction services persisted. At Imperio, we experienced a year filled with exciting new projects and changes. In this article, we look back at the key trends that shaped 2025 in GTA construction – from homeowners investing in renovations and garden suites, to robust commercial projects – and share our insights as a trusted general contractor serving Toronto, Oakville, and beyond.

Residential Construction in 2025

Residential construction activity in Ontario started to rebound in 2025 after a slight dip in 2023-24. Government data showed that housing starts had slowed by 7.1% in 2023 amid high interest rates, but a recovery was underway by 2025 as borrowing costs began to ease. High immigration rates into the GTA continued to fuel demand for housing, especially for multi-family units, keeping builders busy. Notably, renovation spending has been on the rise – and is even projected to keep growing through the next decade. Rather than move in a costly market, many homeowners chose to upgrade their existing homes, adding extensions, modernizing interiors, and making strategic improvements instead of trading up to a new house.

One of the most remarkable residential trends in 2025 was the surge of interest in garden suites (backyard accessory dwelling units). Toronto had legalized garden suites city-wide in 2023, and homeowners have begun to embrace the idea of building small houses in their backyards. We worked with several homeowners in Toronto and Oakville on garden suite designs, providing full 3D renderings of these coach house-style units. These clients loved being able to visualize a proposed garden suite in 3D – seeing the layout, finishes, and how it fits in the yard – which helped them make informed design decisions aligned to their vision.

Garden suites offer a way to generate rental income or house aging parents/adult children, all without buying another property, so it’s no surprise many GTA residents showed interest. Oakville, for example, moved to expand housing options by permitting up to four units per lot (such as a main house, basement apartment, and additional garden or coach houses) in line with provincial policy. This supportive policy environment, combined with homeowner demand, made garden suites a hot topic in 2025 home construction.

Embracing Technology and 3D Design

Another shift we observed in 2025 was homeowners’ growing expectation for technology-driven planning tools. 3D architectural renderings and virtual design walkthroughs have gone from a luxury to almost a standard part of the process for many projects. Homeowners want to see what their future space will look like in detail, before the first nail is hammered. At Imperio Construction, we’ve embraced this wholeheartedly. By creating realistic 3D models of renovation projects and additions, we enabled clients to preview different layouts, finishes, and even furniture placements. This is not only an exciting process but also helps catch any design tweaks early, ensuring the final build meets the client’s expectations.

Industry-wide, builders are adopting advanced tech – in fact, about 85% of contractors say that using new technology is important for their business’s future. Whether it’s drones surveying sites or BIM software improving accuracy, the construction field is modernizing. Our use of 3D rendering is part of that broader trend, and it proved invaluable in 2025 for aligning projects to homeowners’ dreams with minimal surprises.

Commercial Construction in 2025

On the commercial side, construction activity in the GTA remained resilient. Large-scale infrastructure and development projects (hospitals, transit lines, factories, etc.) continued to move forward, which kept confidence high in the industrial, commercial, and institutional construction sector. In fact, a survey early in 2025 found that about two-thirds of Ontario contractors were optimistic about the industry’s growth, despite the uncertain economic climate. We experienced this optimism firsthand through a number of exciting commercial projects.

Impero Construction was proud to partner with Archmill House on rapid renovation (“Re-Image”) projects for Tim Hortons restaurants across Ontario. Throughout 2025, we helped rebuild and refresh multiple Tim Hortons locations – from the GTA to smaller communities – under very tight timelines. These fast-track commercial renovations involved complete interior and exterior makeovers of the cafés, often while minimizing downtime so the franchise could keep operating. By coordinating closely with Archmill, we delivered new-look, modernized Tim Hortons stores in a matter of weeks. It is a thrilling experience to see these iconic coffee shops transformed, and to know that our work contributed to better customer experiences (and even sales uplifts) for the franchise owners.

In addition to restaurant projects, Imperio also took on a challenging heritage building restoration in 2025. This project involved stabilizing and rebuilding the structural integrity of a century-old building that had a collapsing brick wall and failing foundation. Our team installed temporary shoring, replaced decayed joists and rafters, and reinforced the foundation – essentially giving the historic structure a second life. Preserving a piece of local heritage while making it safe and sound again was immensely rewarding for us. These commercial and institutional projects highlight how diverse 2025 was – one week we might be pouring concrete for a new café counter, the next reinforcing a 19th-century wall – and showcase Imperio’s versatility as a general contractor.

Navigating Challenges: Budgets and Trust

While 2025 brought plenty of work, it wasn’t without its challenges. The rising cost of construction materials was a top concern for both homeowners and contractors throughout the year. Prices for many building materials had soared in prior years; thankfully, inflation in material costs began to moderate in 2025, but they were still high. In fact, about 35% of contractors surveyed said escalating material prices were among their biggest worries in 2025. We definitely saw clients feeling the squeeze of higher project costs – from lumber to drywall, everything simply cost more than it did a few years ago. This meant homeowners were more budget-conscious and often had to make some tough decisions about their project scope. Early in the design phase, we’d work closely to prioritize the “must-haves” versus “nice-to-haves” to ensure the project stayed within budget. Value engineering and careful project management are crucial to prevent cost overruns in this climate. The good news is that by involving clients in transparent budgeting and offering creative solutions (like alternate materials or phased upgrades), we can still deliver dream spaces without breaking the bank. And with interest rates remaining higher than the ultra-low levels of the 2010s, clients appreciated our help in planning affordable, realistic project timelines. Now, in late 2025, there were signs that interest rates had stabilized and even slightly lowered, which may relieve some financial pressure on homeowners going forward.

Another theme we saw in 2025 was homeowners placing greater emphasis on trust and quality when selecting a contractor. With economic uncertainty, people were less willing to take a gamble on inexperienced or unproven contractors. We often heard new clients say that they had done extensive research online – searching for “construction companies near me” and then meticulously reading reviews, checking past projects, and even asking for referrals – before choosing to reach out. The old stereotype of the unreliable contractor has no place in a year where budgets are tight and stakes are high. Homeowners wanted assurance that their project would be done right, the first time. Imperio Construction’s long-standing track record and reputation became a big asset here. Our 25+ years of experience, professional engineering leadership, and consistent five-star customer reviews helped clients feel confident they were in good hands. In 2025, we doubled down on clear communication and transparency: from day one, we set realistic expectations, provided detailed contracts, and kept clients updated at every step. This approach proved effective – not only did it ease homeowners’ anxieties, but it also meant projects ran smoother with everyone on the same page. By the end of the year, we found that many new projects were coming through word-of-mouth referrals, which we take as the ultimate sign of trust earned.

Looking Ahead to 2026

After a whirlwind 2025, we at Imperio are excited to see what 2026 brings. The outlook is generally optimistic. Analysts predict steady growth in Ontario’s construction activity through 2028, thanks to factors like population growth and major public investments. For residential construction, if interest rates continue to ease and government housing initiatives take effect, we could see a pickup in homebuilding alongside the ongoing renovation boom. Homeowners will likely keep adding secondary units (garden suites and basement apartments) given the sustained focus on housing affordability and multigenerational living.

On the commercial front, there’s a strong pipeline of projects – from transit expansions to new commercial developments – that should keep contractors busy. Imperio plans to continue leveraging the latest technology to deliver quality projects efficiently. Most importantly, we will maintain the commitment to reliability and client satisfaction that defined our 2025.

2025 was a year of new construction trends and lessons: adapt to new types of projects, embrace innovation, manage costs diligently, and never compromise on trust. Our team tackled everything from cutting-edge garden suites to heritage restorations, all while navigating a shifting economic landscape. The GTA construction industry showed its resilience, and our team is proud to have been a part of it. With a solid foundation built this past year, we’re ready to build even greater things in 2026 – turning our clients’ visions into reality, one project at a time. Here’s to another year of building dreams, both residential and commercial!

Sources: The above insights incorporate industry data and reports (e.g. Ontario construction forecasts, contractor surveys) as well as Imperio’s first-hand experience in 2025. Key statistics were drawn from sources like the Ontario Construction Secretariat survey and local news reports on Toronto’s housing initiatives.