In the first half of 2025, construction began on only 27,368 new homes in Ontario – a 25-per-cent drop compared with the same period in 2024.EDUARDO LIMA/The Globe and Mail

Jake Fuss and Austin Thompson are analysts at the Fraser Institute.

According to new data from Canada Mortgage and Housing Corp., home building in Ontario plummeted in the first half of 2025 compared with prior years, making Premier Doug Ford’s target of 1.5 million new homes by 2031 look increasingly far-fetched.

While building more homes remains a challenge across much of Canada, the particularly sharp decline in Ontario undermines national progress. In the first half of 2025, housing starts in Ontario fell by 25 per cent compared with last year. Meanwhile, the rest of Canada saw a 17-per-cent increase in starts during the same period.

The weak numbers undermine the Carney government’s pledge to double national home building by 2035 – a goal that was already very unrealistic. But the failure to increase home-building levels in Ontario does more than tarnish the reputation of politicians who make promises they can’t keep – it frustrates progress toward housing affordability across the country, harming Canadians who are priced out of the housing market or struggling to pay rent.

In the first six months of 2025, construction began on only 27,368 new homes in Ontario – a........

© The Globe and Mail