Homebuilding in Ontario is showing early signs of recovery ahead of the spring construction season, potentially beginning to reverse years of decline.
New data released by the Canada Mortgage and Housing Corporation (CMHC) shows housing starts in the province increased year-over-year for the second month in a row.
According to the data, the number of new homes started in February increased 17 per cent this year to 4,665. Only 387 of them were single-family homes.
While the CMHC found Toronto’s housing starts dipped by almost 30 per cent, other places recorded a significant increase.
Overall, over the opening two months of the year, Ontario reported a 14-per cent increase compared to the same period in 2025. That was substantially above the national average of five per cent.
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The two months of growing housing starts will be welcome news for the Ford government, which has presided over years of stalling housing construction.
Initially, 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.
Toward the end of last year, 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.
Global News now understands the measure will be expanded to include anyone buying a new-build home, not just first-time purchasers.
While the government has admitted its goal of 1.5 million new homes by 2031 is now a “soft target,” Housing Minister Rob Flack is hoping changes brought in last year will help spur construction for this spring.
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