The province is 19 per cent behind Ontario’s target of 15 million homes by 2031. Provincial real estate associations have warned of a slowdown in construction due to high interest rates and construction financing.
In a report released Jan. 1, the Ontario Real Estate Association (OREA) said 285,399 homes have been under construction since Premier Doug Ford announced the ambitious goal in 2021. However, considering the annual construction start figures, construction is lagging behind.
As seen, in 2022, construction of 96,000 houses started. Construction of 90,000 houses will begin in early 2023.
According to the 67-page report, the number still looks much better than the previous three decades, but is an average of 1.5 million less than the new units needed each year. Unless dramatic action is taken, Ontario’s economic and social future is at risk.
OREA said the provincial government’s housing reform deserves praise. However, a shortage of builders and land as well as a widespread bias against development is contributing to this slow housing growth. Despite government changes in mortgage eligibility, downpayments and carrying costs, the situation is not helping. Rather, it is creating barriers to affordable home ownership. Rising interest rates are also playing a role in this.
OREA CEO Tim Hudak told reporters at a press conference on February 1, “We’ve made great progress on four pieces of legislation under the Ford administration.” In 30 years between 2021 and 2023 we have built more houses and apartments. It’s a great start. We should do things faster. There is no room for doubt here. This is not the time for any kind of pause. Go ahead with the plan. Remaining work to be completed.
