In January 2026, Ontario's homebuilding industry experienced a notable revival, with housing starts increasing by 12 percent compared to the same month in the previous year. This rebound, as indicated by data from the Canada Mortgage and Housing Corporation (CMHC), comes after a prolonged trend of declining housing starts, which had been exacerbated by low demand and a surplus of homes on the market. Despite this positive turn, single-detached homes saw a sluggish performance, with only 550 starting construction in the province, highlighting the ongoing challenges in the market.

The CMHC data reveals that the majority of the new housing starts were multi-residential units, totaling 3,905. However, the specifics regarding whether these units are designed as condominiums or purpose-built rentals remain ambiguous. This pattern contrasts sharply with Ontario's housing performance when juxtaposed against other provinces. Quebec, for instance, faced a significant decline of 33 percent in housing starts during the same period, while British Columbia reported an impressive 41 percent increase, suggesting a more robust market environment compared to Ontario's ongoing struggles.

The increase in housing starts in Ontario may signal a shift in the province's housing market, which has suffered under the Ford government's management. The factors contributing to this improvement will likely face scrutiny as market analysts attempt to understand if this uptick is a temporary blip or the beginning of a more sustained recovery in the homebuilding sector. With the complexities of consumer demand and housing supply still in play, the developments in Ontario could set the tone for future housing policies and economic strategies.