Vaughan, Ont., April 30, 2026 (GLOBE NEWSWIRE) — A new report done for the Residential Construction Council of Ontario (RESCON) indicates that housing starts decreased dramatically in 34 municipalities studied across the province in 2025, while job losses in the industry continue to grow.
The analysis revealed that condo apartment starts were down 52 per cent relative to the 2021-24 averages, while ground-oriented housing starts declined 43 per cent, showing that housing weakness in municipalities – with a few exceptions – continues to extend well beyond the condo market.
“The findings of this report are disturbing and confirm what we have been seeing on the ground for some time now,” says RESCON president Richard Lyall. “The cost of building a home is still too high due to taxes and government-imposed fees and levies. Builders need to be able to build homes that people can afford. Steps must be taken to get the industry back on track.”
The report found that job losses in the industry continued to mount throughout the year, with 46,562 fewer person years of employment compared to the 2021-24 averages. The negative employment impacts, while most severe in the Toronto area, are worsening in other regions of the province as well.
The report was done by the Missing Middle Initiative at the University of Ottawa. The assessment is based on data obtained from Canada Mortgage and Housing Corporation and Altus Group.
It is the third report commissioned by RESCON that examines the state of the housing crisis. The new report provides an examination of the state of housing in the GTA and GGH in 2025. In all three reports, researchers examined 34 municipalities across nine separate metro areas in the GTA and GGH and assessed the state of housing sales and construction, and the effects on industry employment.
The new report also graded the municipalities in five categories related to housing starts and sales. Of the 34 municipalities, 17 received an F, eight received a D, and nine other municipalities received a C or higher, largely unchanged from the previous report issued in December.
The report indicates that high taxes on new home construction, including development charges which have risen by more than 5,000 per cent in 25 years in some municipalities, are the primary drivers of lower home sales. Recent agreements between the federal and provincial governments to temporarily eliminate the sales taxes on new homes and plans to cut development charges will move the needle, but plenty of implementation work needs to be done.
“A lack of new home sales inevitably leads to job losses, which harms both the industry and the economy,” says Mike Moffatt, an economist and founder of the Missing Middle Initiative. “With economic growth slowing across the globe, Canada can ill-afford a slowdown in the homebuilding sector.”
Click here to read the report.
RESCON is the province’s leading association of residential builders committed to providing leadership and fostering innovation in the industry.
The Missing Middle Initiative produces research, a Substack newsletter and thought pieces, videos and a podcast on the barriers preventing young Canadians and new families from entering the middle class.
Grant Cameron RESCON 905-638-1706 media@rescon.com
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