Ontario Notches Back-to-Back Monthly Gains in Housing Starts
Ontario's housing construction numbers are heading in the right direction. New data from the Canada Mortgage and Housing Corporation (CMHC) shows housing starts in the province increased year-over-year in February 2026, the second consecutive month of improvement, giving the Ford government reason to point to progress on one of Ontario's most pressing challenges.
After years of housing supply falling well short of demand, any sustained uptick in starts is a welcome indicator for a province grappling with affordability and availability problems across its major urban centres.
What the Numbers Mean
Housing starts measure the number of new residential construction projects that have begun in a given period. They are a leading indicator of future housing supply, today's starts become tomorrow's available homes. Two consecutive months of year-over-year gains suggests that the pipeline of new homes is beginning to expand, though analysts caution that it will take sustained increases over a longer period to make a meaningful dent in Ontario's housing deficit.
The gains come against a backdrop of elevated interest rates in recent years, which dampened construction activity across the country as developers faced higher financing costs and buyers faced steeper mortgage payments. Any improvement in starts despite that environment is notable.
The Ford Government's Housing Push
The provincial government has made housing supply one of its central policy priorities, introducing legislation and regulatory changes aimed at removing barriers to construction, speeding up approvals, and increasing density in communities across Ontario. Officials are pointing to the back-to-back monthly gains as evidence that these policies are beginning to yield results.
Critics argue the province still has a long way to go and that progress remains too slow relative to population growth and demand, particularly in the Greater Toronto Area and other high-demand regions.
The Ottawa Connection
For Ottawa, the provincial housing numbers matter both directly and indirectly. The city has its own housing affordability challenges, with home prices and rents having risen substantially over the past several years. More housing supply across Ontario generally helps ease pressure on the entire provincial market over time.
Locally, the city continues to work through its own official plan and zoning frameworks, and any provincial momentum on housing supply could provide additional policy tailwinds for getting more homes built in and around the capital.
Source: Global News
