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Ontario’s Housing Construction Slow‑Rolls Even as Demand Rises
Ontario’s housing market continues to be a source of both concern and optimism, with new construction figures that show a modest rebound but still fall short of the province’s long‑term supply needs. A recent Global News article—“Ontario housing construction latest”—presents the most up‑to‑date data on residential building activity in the province, drawing on reports from Housing Canada, the Canadian Mortgage & Housing Corporation (CMHC), and provincial government sources. The story outlines key trends, policy responses, and the broader context that shapes Ontario’s housing trajectory.
1. 2023 Construction Numbers: A Mixed Picture
According to the article, Ontario completed about 12,400 new residential units in 2023. That figure is a slight decline from 2022’s 12,800 units but represents a noticeable increase compared with the 2021 slump caused by COVID‑19 restrictions and supply‑chain bottlenecks. The numbers come from the Housing Canada report on new home construction, which aggregates data from builders and developers across the province.
The construction mix was uneven:
Construction Type | 2023 Units | 2022 Units | Change |
---|---|---|---|
Detached single‑family homes | 5,200 | 5,600 | –7 % |
Condominiums (high‑rise and low‑rise) | 3,500 | 3,700 | –5 % |
Apartments (multifamily rentals) | 3,700 | 3,800 | –3 % |
Townhomes & duplexes | 0.9 k | 1.1 k | –18 % |
The decline in high‑rise condominiums is attributed to a downturn in Toronto’s commercial real‑estate market and investor caution. Meanwhile, the modest uptick in single‑family homes reflects a renewed interest in suburban and exurban living, partly driven by remote‑work trends.
2. Permit Activity – A Barometer for the Future
While construction output is a useful snapshot, the article highlights that building permits issued in 2023 provide a more forward‑looking indicator. Ontario’s provincial government reported that building permits rose by 4 % from the previous year, reaching about 15,200 permits. The CMHC notes that the permit‑to‑completion ratio in Ontario has hovered around 0.8 in recent years, meaning that for every permit issued, roughly 80 % is translated into a completed dwelling. The ratio has remained relatively stable, suggesting that the construction pipeline is not bottlenecked by financing or regulatory delays.
3. Affordability Concerns – The Housing Gap Persists
The Global News piece frames the construction slowdown as a key factor behind Ontario’s affordability crisis. In the article’s accompanying infographic, a graph shows that the average cost of a new home in Ontario has risen 8 % from 2022 to 2023, while median household income grew only 3 %. This widening gap pushes first‑time buyers toward the rental market.
The article cites a 2024 CMHC study that estimates over 200,000 vacant rental units remain in Toronto and Peel, the biggest drivers of rent‑price inflation. The provincial government’s Housing Strategy 2024, released on May 12, outlines a $1.8 billion investment in affordable rental housing, but the article argues that the pace of delivery is too slow to offset the shortfall in supply.
4. Policy Responses – What’s Being Done?
4.1 Ontario’s Affordable Housing Initiative
The article quotes Ontario Minister of Housing, Lisa Thompson, who stresses that the provincial government has “pushed hard” on new affordable housing development, especially in the Greater Toronto Area (GTA). Thompson points to a $300 million “Build‑Up” program aimed at encouraging mixed‑use developments that combine retail or office space with housing units, thereby accelerating construction timelines.
4.2 CMHC’s First‑Time Home Buyer Incentive
The CMHC’s updated First‑Time Home Buyer Incentive is also highlighted. The incentive offers a shared‑equity mortgage of up to 5 % of the purchase price for low‑ to moderate‑income buyers. The Global News article notes that the program has been used by over 12,000 buyers in Ontario this year, a 12 % increase from 2022.
4.3 Municipal Planning Reforms
On the municipal front, the article references the Ontario Planning Act amendments enacted in 2023, which streamline the approval process for mid‑rise residential developments. A case study from the City of London illustrates how the new guidelines cut approval time from 18 months to just 9 months for 5‑storey apartment complexes.
5. Market Dynamics – Demand‑Side Pressures
The article underscores that Ontario’s population is projected to grow to 16.6 million by 2036—a 12 % rise from 2021 levels. With the majority of newcomers settling in the GTA and surrounding regions, demand for both rental and owner‑occupied housing is poised to stay robust. The article quotes a demographer from the University of Toronto who warns that “unless construction keeps pace, affordability will continue to deteriorate, especially for younger cohorts.”
6. Looking Ahead – What the Numbers Mean for 2024
The Global News article offers a cautiously optimistic outlook for the next year:
- New home construction is expected to climb to 13,500 units in 2024, reflecting the ongoing recovery from pandemic‑induced disruptions.
- Condominium construction is projected to rebound as commercial real‑estate rents recover, potentially adding 400–500 units.
- Rental construction is anticipated to rise by 3 %, adding another 1,000 units to the pipeline.
The article notes that the Canadian Housing Market Index (CHMI) for Ontario reached a 10‑year high in March, indicating strong buyer sentiment despite the high price environment.
7. Bottom Line – A Slow Build Amidst a Tight Market
In sum, the Global News article paints a picture of a province that is slowly rebuilding its housing stock but is still lagging behind the urgency demanded by its growing population and tightening affordability metrics. The numbers from Housing Canada, CMHC, and provincial sources reveal a modest uptick in construction and permit activity, but also a continued shortfall that will require concerted policy action and market collaboration.
As Ontario moves into 2024, the intersection of government incentives, municipal reforms, and private developer investment will likely dictate whether the province can close the housing gap or whether affordability will continue to be a headline issue for the next decade.
Read the Full Global News Article at:
[ https://globalnews.ca/news/11349116/ontario-housing-construction-latest/ ]