Ontario’s housing construction sector saw a positive trend in May, with a 23% increase in homes under construction compared to the previous year. The data from the Canada Mortgage and Housing Corporation (CMHC) reported 7,062 new projects started, primarily multi-residential units.
Although the overall housing starts for 2024 were still down by six percent compared to 2023, the surge in construction comes as the province aims to add 1.5 million new homes by 2031.
Municipalities in Ontario, however, are raising concerns about CMHC’s data accuracy, which impacts funding allocations. The Building Faster Fund (BFF) introduced by the Ford government rewards towns and cities that hit their housing targets, based on CMHC data. Some municipalities, like Ajax and Clarington, are disputing the numbers as they believe new housing starts were undercounted.
As tensions rise, Ontario’s Big City Mayors have called on CMHC and the province to reevaluate the housing start numbers for 2023 and reconsider funding allocations. The discrepancies in data tracking have led to municipalities missing out on substantial financial support that could have bolstered housing growth initiatives.