Ontario finally sees increase in housing starts after years of decline

Ontario’s homebuilding industry showed signs of life in the first month of the year, with housing starts finally improving after years of persistent decline in the face of cratering pre-construction sales.

Data released by the Canada Mortgage and Housing Corporation shows that Ontario saw a 12 per cent bump in new housing starts for January 2026 compared with the same period in 2025.

The data also shows there were 550 single-detached homes starting construction across the province — a sign that the ongoing oversupply of homes, coupled with low demand, has led to a slowdown in stand-alone homes.

While the CMHC data shows that the vast majority — 3,905 units — were multi-residential developments, it’s unclear whether the projects are condos or purpose-built rentals.

Ontario’s housing starts were substantially better than Quebec’s, where they fell by 33 per cent year over year. British Columbia recorded a 41 per cent increase.

The Ford government has overseen a flailing housing industry for years. First, the premier blamed rising interest rates for the lack of housing, promising new homes would sprout “like mushrooms” if rates dropped.

But when the cost of borrowing fell, the housing market didn’t rebound. Ford suggested the cost of building approvals and permits from cities was to blame, an issue his administration has repeatedly tried to address through legislation.

Most recently, Ontario unveiled a new home tax incentive for first-time buyers. A couple of months after it was introduced, the premier said he knew it wouldn’t work, suggesting it needed to be expanded.

Housing Minister Rob Flack said last November that he was refocusing on the coming spring, adding that a series of new and already-announced changes were designed to spur construction in 2026.

“If you take a look at Bill 17 and now Bill 60 … we’re creating the conditions for next spring. We really are setting up for success for next spring,” Flack said at the time.

Source: Global News