Ontario’s 2024 housing starts fall short of targets, raising doubts over the province’s 2031 home-building goal despite expanded counting methods.
Provincial Goal Slips Further from Reach
Ontario ended 2024 with housing starts far below the pace required to meet Premier Doug Ford’s target of 1.5 million homes by 2031. Despite adding new categories such as student dormitories and long-term care beds, the final total fell well short of expectations.
New Data Highlights Slow Growth
The government’s updated housing tracker, released after an eight-month gap, shows 94,753 total starts last year. This included 73,462 traditional homes, 14,381 additional residential units, 2,278 long-term care beds, 2,807 post-secondary student housing beds, and 1,825 retirement suites. The province needed 125,000 homes in 2024 to remain on track for its goal.
Government Defends Strategy
Housing Minister Rob Flack’s office maintains that Ontario is “accelerating housing development” through infrastructure investments and municipal support. Spokesperson Alexandra Sanita cited 9,125 rental starts as part of the progress, emphasizing that government funding is helping unlock more construction potential.
Industry Sees Alarming Decline
The province’s financial accountability officer reported that housing starts in early 2025 were at their lowest first-quarter level since 2009. Dave Wilkes, president of the Building Industry and Land Development Association, warned of a construction downturn similar to the early 1990s, with up to 40 per cent of the workforce at risk of layoffs due to weak sales and rising costs.
Rising Costs Challenge Builders
Developers point to steep development charges as a major obstacle to affordability. These fees fund vital infrastructure but, builders argue, significantly raise home prices. Industry groups are calling for reduced fees, temporary tax rebate expansions, and policy changes to boost consumer confidence and demand.
Fewer Municipalities Meeting Targets
Ontario’s Building Faster Fund rewards municipalities that meet at least 80 per cent of their housing targets, but only 23 of 50 cities qualified in 2024 — a sharp drop from 32 in 2023. Critics, including Green Party Leader Mike Schreiner, are urging broader zoning reforms, modular housing initiatives, and increased funding for affordable housing to tackle what they call the worst housing crisis in Ontario’s history.
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