A new study highlights Ontario’s significant lag in home construction compared to other Canadian provinces over the past six years. Between 2018 and 2024, Ontario consistently ranked near the bottom in homebuilding per capita. This underperformance worsened in 2024, with Ontario initiating 13,000 fewer housing starts than the previous year. Meanwhile, other provinces increased their rates, collectively adding 14,000 more homes year over year. Experts warn that this trend exacerbates the housing crisis, contributing to skyrocketing rents, low vacancy rates, and increased reliance on food banks.
The province’s slow construction pace has also led to population shifts. Over the past four years, Ontario has seen a net migration loss of over 100,000 residents to other provinces. This "brain drain" has been attributed to unaffordable housing and a lack of job opportunities tied to housing development. The Smart Prosperity Institute, which conducted the study, notes that Ontario's housing challenges are further compounded by bureaucratic red tape, high development charges, and labor shortages in the construction sector.
Critics point to systemic issues as the root of the problem. Ontario’s development process is often criticized for its lengthy approval times and restrictive zoning laws. Additionally, the construction industry faces a workforce shortage, with one in five workers nearing retirement age. Efforts to attract young people, women, and underrepresented groups to the skilled trades have been insufficient, leaving a significant gap in the sector’s labor force.
Despite these challenges, there is cautious optimism. Ontario's government has announced plans to introduce new housing legislation aimed at streamlining approvals and addressing zoning barriers. However, industry leaders argue that more significant reforms are needed to meet the province’s ambitious target of building 1.5 million homes by 2031. The focus must shift towards innovative construction techniques and more inclusive training programs to scale up housing production effectively.
The housing shortage isn’t just a provincial issue; it impacts all of Canada, which must double its housing construction pace to meet growing demands. Policymakers emphasize the importance of cooperation between governments, the construction industry, and educational institutions to tackle this crisis. Without urgent and comprehensive action, Ontario risks deepening its housing affordability and availability crisis.
Experts agree that Ontario's housing woes boil down to supply shortages. Addressing this will require reducing costs associated with development and making it easier for builders to bring projects to market. As stakeholders await further government action, the province faces increasing pressure to implement solutions that will bolster its housing stock and stabilize the market.