In Ontario, homebuilding is witnessing an uplift with new data revealing a two-month trend of increasing housing starts. The Canada Mortgage and Housing Corporation (CMHC) reported a 17% year-over-year increase in housing starts for February, totaling 4,665 new homes initiated in the province, although only 387 were single-family units. This trend suggests a rebound in the residential construction market ahead of the busy spring season, which could mark a reversal of the previous years’ decline in construction activity.

Notably, while the city of Toronto saw a significant decrease in housing starts, dropping nearly 30%, other regions in Ontario experienced substantial growth, contributing to an overall increase of 14% in housing starts for the first two months of the year compared to 2025. This outperformance is stark when juxtaposed against the national average increase of only 5%, signifying Ontario's robust recovery in homebuilding.

The improvement in housing starts is likely a welcome relief for Premier Doug Ford's government, which has faced criticism for the stagnation in housing construction during its tenure. As the provincial government aims to address housing shortages and rising home prices, these encouraging signs may reflect a more proactive approach to enhancing the housing sector, especially given the political pressures surrounding affordability and availability of housing.