TORONTO — Ontario's Financial Accountability Officer (FAO) released a report today highlighting a significant decline in housing starts in the province. According to the report, the first quarter of 2025 experienced the lowest levels of housing construction since 2009. This decline raises concerns amidst otherwise positive trends in the Ontario economy.

The FAO's economic monitor detailed that key economic indicators such as employment, retail and wholesale trade, manufacturing sales, and exports have shown notable gains. However, the housing sector exhibits "significant weakness," contrasting the growth seen in other areas of the economy.

During the first quarter of 2025, construction commenced on only 12,700 housing units, according to Jeffrey Novak, the financial accountability officer. This figure represents a startling 20 percent decrease from the first quarter of 2024, a year that had already experienced low housing start numbers.

The provincial government has set an ambitious target to construct 1.5 million new homes over the span of ten years, aiming for completion by 2031. However, the current trend indicates that Ontario is not on track to meet this objective, highlighting a pressing issue in the housing market amidst broader economic advances.

A spokesperson for Housing Minister Rob Flack acknowledged the progress Ontario has made in building new homes but pointed to inherent challenges that affect housing development. These challenges include global economic uncertainties and ongoing supply chain disruptions, which are factors beyond the province's control.

This report brings to light the difficulties faced by Ontario in striking a balance between positive economic growth in various sectors while contending with a significant downturn in the housing market. Policymakers and stakeholders will need to address these issues effectively to work towards meeting the government's housing goals.