Ontario housing starts at lowest level since 2009, financial watchdog says

Ontario’s financial watchdog says the province saw the fewest housing starts in the first quarter of 2025 since 2009. Only 12,700 new housing units began construction between January and March—marking the weakest quarterly total in 16 years.

This number is 20 percent lower than the same period in 2024. While other parts of Ontario’s economy—like jobs, retail and wholesale trade, manufacturing sales, and exports—are holding steady or improving, experts point out that housing is the clear weak spot.

Ontario has pledged to build 1.5 million new homes by 2031, but the current pace of construction is falling well short of what’s needed to meet that goal.

The report quotes Financial Accountability Officer Jeffrey Novak, who explains that high costs to build and soft demand have discouraged developers. On top of that, many buyers are struggling with affordability, which makes it harder for new homes to sell or be financed.

The provincial government responded by pointing to several challenges outside its control. They cited global economic uncertainty, supply-chain delays, and worries about possible US tariffs as factors putting pressure on the construction sector.

Still, the government said it's making changes to speed up new housing. These include cutting red tape, adjusting development rules, and fast-tracking project approvals.