According to a new report by the Smart Prosperity Institute, the housing crisis in Ontario worsens and the province needs heavy reforms. Authored by Canadian economist Mike Moffatt, the study shows that Ontario is behind in producing sufficient houses to support its increasing population since only the province ranks eighth in housing starts for every 100 newcomers. Over the past six years, Ontario has started building only 29 homes for every 100 newcomers, well behind Quebec, where 47 homes per 100 newcomers have been started in the same period.
Moffatt places the blame on the provincial government and municipalities equally, stating that they must take far-reaching reforms to address the housing crisis. These changes would need to focus on areas such as zoning laws, development charges, and other regulatory measures. Without these adjustments, Moffatt warns that Ontario will be unable to meet its housing demands in the coming years. The study also highlights that only a small number of municipalities are keeping pace with housing construction. For example, only the large municipalities of Pickering, Oakville, and Kitchener rank within the top 20 in Canada for housing starts, whereas several Ontario cities, including Brampton, Windsor, and Sudbury, rank near the bottom of the list.
One critical issue identified in this study is the lack of apartment-style housing, with Toronto being the only municipality in Ontario to rank among the top 20 per capita in housing starts. The shortages have added their own quill to the high housing costs and economic woes that have equally led to reverse migration as more people leave for other provinces. As Moffatt put it, Ontario has lost more than 100,000 people in the last four years, exacerbating housing and economic woes in the province.
Lastly, the report remarks that there is a low possibility of any near-term improvement in Ontario’s housing market. According to the CMHC, from January to October 2024, housing starts in the province decreased by 13,000 units; however, in the rest of the country, the value increased by 14,000 units. Further, the province would build less than 100,000 housing units per year during the next three years with the aid of Ontario’s 2024 Fall Economic Statement, and, by doing so, further underlines the province’s housing crisis.
The consequences of this shortage in housing are severe: record-low vacancy rates, increasing rents, and a growth in homelessness, affecting an estimated 234,000 people. Finally, Moffatt concludes that without major reforms, Ontario’s housing crisis will continue to deepen and pose long-term social and economic implications.
