Toronto’s housing market is facing serious problems this year. A new report shows that Toronto is now the “epicenter of weakness” in homebuilding across Canada. The Ford government in Ontario had set a goal to build 1.5 million new homes by 2031, but recent data shows that this target is becoming harder to reach.
According to the latest numbers from the Canada Mortgage and Housing Corporation (CMHC), Ontario is having a much worse year in 2025 than it did in 2024. From January to July 2025, only 33,821 new homes started to be built in the province. This is a 25 per cent drop from the same period last year. This makes Ontario’s performance the worst in the country.
The housing situation in Ontario stands out because other provinces are doing much better. Quebec has seen a 38 per cent increase in new homes compared to last year. The Prairies, which include Alberta, Manitoba, and Saskatchewan, have seen a 24 per cent increase. Atlantic Canada’s housing starts are up by 16 per cent. Even British Columbia, which is also struggling, is down only four per cent.
These numbers show that Ontario’s problems are more severe than other parts of Canada.
The CMHC report also points out that confidence in housing construction is especially low in Ontario and British Columbia. Toronto’s condominium market is in deep trouble. Pre-sale condo purchases are at their lowest since 2009. The report says, “Among Canada’s largest cities, Toronto was the epicenter of weakness for residential construction in the first half of 2025.”
Every type of housing in Toronto is facing a decrease in activity, but condos are the biggest issue. Many developers are struggling to sell units, and projects are being delayed or cancelled.
Housing Minister Rob Flack recently admitted that the situation looks difficult. He said, “Potential new home buyers have hit the pause button.” He explained that the housing market has almost stopped moving.
When asked if the government’s goal of building 1.5 million homes by 2031 is still possible, Flack’s office avoided giving a straight answer. A spokesperson said, “Our government is accelerating housing development, investing in infrastructure, and giving municipalities the tools they need, and requested, to build more homes.”
The statement also mentioned that while progress has been made, challenges like global economic problems, supply chain issues, and trade tariffs with the United States are slowing things down. But the spokesperson did not confirm whether the goal can still be achieved.
The Ontario NDP is very critical of the government. Catherine McKenney, an NDP member, said the Ford government has “thrown in the towel.” She said families are suffering while the government fails to build enough homes.
“We hear Ford say that governments don’t build homes, but they continue to demand that municipalities do the job for them,” McKenney said. “Then he tells Ontarians that his own experts’ advice to allow for more housing in more places won’t help to increase the number of homes being built.”
Another NDP member, Jessica Bell, said, “Condo construction is in free fall, rental projects are stalling, and Ontarians are paying the price for Ford’s failures.”
There are several reasons for Ontario’s housing problem. The cost of materials has gone up, and there are problems in the supply chain. Builders also face uncertainty because of global economic issues. Recently, the United States, led by President Trump, introduced new tariffs that are affecting businesses and building supplies.
Another challenge is that banks and investors are hesitant. When they see fewer buyers, they are less willing to fund new projects. Many people are also worried about rising interest rates, which make it harder to afford mortgages.
The housing problem is affecting ordinary people the most. With fewer homes being built, prices remain high, and it becomes harder for families to buy or rent places to live. Many families have to move far from their jobs or schools because they can’t afford downtown living.
Some families are stuck renting in unsafe or overcrowded buildings. Others wait for years without finding a place that fits their needs and budget.
Experts believe the problem will not go away quickly. Even though the government has funds and programs in place, they may not be enough to reverse the trend. Some believe that housing starts will continue to be low for the next few years.
However, it’s not all negative. Some investors and builders are still planning for the future. If economic conditions improve and government policies change, the housing market might recover. But right now, many families and communities are feeling the stress.
Toronto’s housing crisis is a growing concern for the entire province. With new home construction falling, confidence in the market is shrinking, and families are struggling. The Ontario government’s goal to build 1.5 million homes by 2031 seems more difficult than ever.
The problems are not only about money or supply—they are about how cities are planned, how families can live safely, and how governments support communities in times of need.
As the crisis deepens, leaders must work together to create real solutions that balance affordability, safety, and access to homes for all. Families across Ontario are watching closely, hoping for action that brings real change.
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