Ontario records sharp decline in housing starts in 2025

January 21, 2026

RED FM News Desk

Ontario experienced a significant slowdown in housing construction in 2025, recording a double-digit drop in housing starts and the weakest performance in the country, according to data from the Canada Mortgage and Housing Corporation (CMHC).

The province saw housing starts fall by 13 per cent compared to 2024, with just 62,561 new homes breaking ground last year. The figure represents the lowest annual total since the Ford government committed to building 1.5 million homes as part of its 2022 election platform.

Ontario housing starts:

  • 2022: 91,885
  • 2023: 85,770
  • 2024: 72,118
  • 2025: 62,561

While CMHC noted a general softening in housing starts across parts of the country, Canada overall recorded a five per cent increase in 2025. Ontario was among only three provinces — along with British Columbia and Prince Edward Island — to post a decline. Quebec, meanwhile, saw housing starts surge by 32 per cent year-over-year.

The Ontario government has blamed regulatory hurdles and market conditions for slowing construction, arguing that recent policy changes and a one-year pause on certain measures are designed to encourage future development.

Housing Minister Rob Flack told Global News he expects the combined initiatives to help boost housing activity and revive the spring construction market.