In recent developments regarding Ontario’s housing market, a report has labeled Toronto as Canada’s “epicenter of weakness” for homebuilding. As the Ford government grapples with these alarming findings, there remains uncertainty about whether it can achieve its ambitious target of constructing 1.5 million new homes by 2031. A deep dive into the latest statistics from the Canada Mortgage and Housing Corporation (CMHC) reveals that Ontario is experiencing a significant downturn in new housing starts, further complicating the provincial government’s housing agenda. New constructions from January to July 2025 totaled only 33,821 units, marking a 25 percent decline from the previous year’s figures, the worst performance across Canada.
The report by the CMHC underscores a broader trend of diminishing confidence in Ontario and British Columbia’s real estate sectors. It specifically highlights that condo starts in Toronto have “plummeted,” with presales reaching their lowest rates since 2009. The statistics paint a stark picture: while provinces like Quebec and the Prairies have seen increases in housing starts, Ontario’s construction efforts continue to lag significantly. The report illustrates that across various housing types, Toronto’s residential construction activities have declined, particularly impacting the condominium segment, which has been the primary factor in stalling progress in the region.
Criticism of the Ford government’s handling of the housing crisis has intensified, particularly from the Ontario NDP. NDP MPP Catherine McKenney expressed frustration, stating that families in Ontario are suffering while mistakes are being repeated by those in power. She accused the government of relinquishing responsibility for housing development, pushing municipalities to take on the burden without providing adequate support or heeding expert recommendations to increase housing availability. This sentiment reflects a growing unease among Ontarians regarding the government’s ability to address the escalating housing crisis effectively.
The tone from the Ontario Housing Minister, Rob Flack, has also shifted toward a more somber acknowledgment of the situation. In an August statement, he noted that potential homebuyers have effectively hit the “pause button,” indicating a stagnation in the housing market. His office faced inquiries regarding the ambitious 1.5 million homes goal set during the 2022 elections, although responses remained noncommittal. While Flack stressed the government’s commitment to accelerating housing development and aiding municipalities, he also pointed out the external challenges complicating progress, including global economic uncertainties and supply chain issues.
Amid these developments, frustrations continued to mount from various political corners, with NDP MPP Jessica Bell summarizing the situation by stating that “Doug Ford has thrown in the towel” regarding housing construction. She cited a decline in condo projects and stalled rental constructions as direct consequences of government failures, painting a grim picture for everyday Ontarians struggling with housing affordability. The challenges facing the province’s housing sector suggest that unless significant policy changes or initiatives are implemented, meeting the housing target may remain a distant hope.
In summary, the current landscape of Ontario’s housing market illustrates a troubling trend, with the Ford government standing at a critical juncture. As it grapples with declining home starts and increasing criticism from opposition parties, the future of housing development in the province holds significant implications for residents. The call for action is urgent as the window to meet construction goals diminishes, and the urgency for tangible solutions becomes ever clearer amid rising pressures from both the public and market conditions.
