Toronto Struggles as Ontario’s Housing Target Slips Further Behind
Toronto has been identified as Canada’s “epicenter of weakness” for homebuilding, highlighting ongoing challenges in Ontario’s housing market as the province falls behind its goal of building 1.5 million new homes by 2031.
Data from the Canada Mortgage and Housing Corporation (CMHC) shows that from January to July 2025, Ontario saw just 33,821 new housing starts, a 25% decline compared with the same period last year. This marks one of the slowest paces in the country, with Quebec and the Prairies reporting significant year-over-year gains in new construction.
The CMHC report also noted a steep decline in condominium construction in Toronto, with presales at their lowest level since 2009. Among Canada’s largest cities, Toronto experienced the largest drop in residential construction, with decreases across all housing types, and condos dragging overall activity.
Housing experts and political figures have expressed concern about the province’s lagging progress. Ontario NDP MPP Catherine McKenney criticized the government for failing to meet housing targets, stating that families across the province are feeling the effects of a stalled housing market.
Housing Minister Rob Flack acknowledged the slowdown, noting that potential buyers have “hit the pause button” and that the market has largely come to a standstill. While the government has emphasized its efforts to accelerate housing development through infrastructure investments and municipal support, it has not confirmed whether the 1.5 million-home goal remains achievable.
The ongoing housing challenges in Toronto and across Ontario underscore the difficulties the province faces in addressing supply shortages amid economic uncertainties, supply chain issues, and stalled construction projects.
