Ontario experiences reduced housing construction, employing revised methods for calculations
Ontario's Housing Starts Fall Short of Premier Ford's Goal
As of 2025, Ontario's housing starts remain significantly below the pace needed to meet Premier Doug Ford's goal of building 1.5 million homes by 2031. The province recorded only about 94,753 housing starts in 2024, which was well below the interim annual target of 125,000 units required to stay on track for the 2031 goal.
In an effort to address this shortfall, the provincial government has established various funds worth several billion dollars to help spur home construction. One of these funds, the Building Faster Fund, is tied to housing starts targets assigned to 50 municipalities. Additionally, the government has allocated an additional $1.6 billion in 2025 to municipalities through the Municipal Housing Infrastructure Program to facilitate housing construction and improve infrastructure.
Despite these efforts, building activity still lags due to factors such as costly construction, slow approvals, and low consumer confidence. Early 2025 data also pointed to one of the weakest first quarters for housing starts in Ontario since 2009, reflecting a downturn similar to the early 1990s, making it the worst in approximately 35 years.
The challenges in the housing market are not limited to high construction costs and low consumer confidence. Green Party Leader Mike Schreiner has criticized the Ford government for not being transparent and honest about the extent of the housing crisis in Ontario. Schreiner suggests enabling more gentle density in existing neighborhoods as a solution to the housing crisis, and also proposes standardizing rules for modular housing and funding more affordable, non-profit, co-op, and social housing.
Schreiner states that the housing crisis is causing concern for a whole generation of young people wondering if they'll ever be able to own a home. In 2023, only 23 of the 50 municipalities met the 80% target, a significant decrease from the previous year.
The federal government could temporarily expand the GST/HST New Housing Rebate to help the housing market, according to some experts. All levels of government can also reduce development charges to spur demand and construction.
In July 2025, Canada-wide housing starts rose to a solid annualized rate of 294,100 units, with Ontario's starts increasing by 16,000 to 74,000 units that month. However, Ontario experienced a 28% decline year-over-year in housing starts according to the Canada Mortgage and Housing Corporation for that period, indicating ongoing challenges despite some monthly improvements.
In conclusion, Ontario's current housing production is below the rate needed to meet Premier Ford's 2031 target, with 2024 starts substantially under target and 2025 performance so far not indicating a strong enough acceleration to close the gap. It remains to be seen how the province will address these challenges and meet its ambitious housing goals.
Sports organizations are advocating for government support to stimulate home construction, as they see a parallel between the housing crisis and the need for more sports facilities. The housing shortfall and the scarcity of sports fields and arenas are both hampering economic growth and social well-being in Ontario.
