Ontario Construction News staff writer
Canada’s largest cities are seeing a significant slowdown in home construction this year, with Vancouver experiencing a 48 percent drop and Toronto seeing a 68 percent decline in new housing starts compared to February 2024.
Nationally, housing starts are down 17 percent year-over-year, with 14,459 units recorded in February 2025, compared to 17,454 in the same month last year.
The decline, reported by the Canada Mortgage and Housing Corporation, is largely attributed to reduced activity in both multi-unit and single-detached housing projects.
It’s the same story in smaller cities across Ontario, including London where housing starts fell 64 per cent during January and February compared to the same period last year.
While experts anticipated a slower start to the year due to fewer purpose-built rental projects, the uncertainty caused by tariffs has dampened consumer confidence.
“We certainly expected the start of this year to be a little bit slower, in part just because we don’t have nearly as many purpose-built rental projects that are getting started,” Jared Zaifman, chief executive of the London Home Builders’ Association told the London Free Press. “Our hope with the lower interest rates . . . was that the trajectory was building up this year, but the uncertainty that has been created by the tariffs has impacted consumer confidence and has really been scaring people off.”
Nationally, actual housing starts are down 17 per cent year-over-year in centres with a population of 10,000 or greater, with 14,459 units recorded in February, compared to 17,454 in February 2024.
The CMHC report comes after the City of London released its 2024 Annual Development Report, highlighting 2024’s “major rebound in development activity, record-breaking increases in housing approvals, and strong progress toward affordable housing targets”.
The report provides a yearly update and commentary on development activity in London and serves as a critical monitoring tool for Council, developers, and community members. It will also support the Growth Management Implementation Strategy (GMIS) and inform infrastructure planning.
2024 highlights include:
- 22,890 new housing units approved, including major projects on the former London Psychiatric Hospital lands and the Oxford Street West and Proudfoot area
- 3,700 building permits for new units issued, marking a 114% increase over 2023
- Affordable housing progress: 2,139 affordable housing units tracked. The City surpassed its Federal Housing Accelerator Fund (HAF) housing target and continues to make progress toward its goal of 3,000 affordable housing units
- 434 Additional Residential Units (ARUs) approved, a 67% increase from 2023
- In addition to housing, industrial, commercial, and institutional sectors also saw major growth, with a 130% increase in industrial projects and 123% growth in institutional developments, including new schools, healthcare facilities, and long-term care homes
- Ongoing process improvements have streamlined approvals, significantly reducing review and approval times for site plan applications, minor variances, consents, official plan and zoning by-law amendments
“This year’s report shows that London is responding to housing needs with record approvals and a strong push toward increasing supply,” said Mayor Josh Morgan. “The work done this past year will be transformative for our city. These numbers reflect Council’s commitment to responsible growth, addressing housing needs, and strengthening our local economy.”
Total construction value reached $2.2 billion, reflecting an 82.2% increase from 2023.
Major construction project highlights:
- Largest project by value: $192.6 million – 8 storey student residence at 1151 Richmond Street
- Largest industrial project: $125.7 million – Warehouse expansion at 2300 Discovery Drive
- Largest residential project: $98.2 million – 11 storey, 217-unit apartment at 230 North Centre Road
- Significant housing developments: Over eight major apartment projects ranging from 77 to 273 units.
- Institutional growth: New elementary schools, long-term care homes, and healthcare facilities.
- Infrastructure expansion: Water filtration system upgrades and food processing/manufacturing plants.
“2024 was a year of extraordinary growth,” said Scott Mathers, deputy city manager housing and community growth. “London is building more homes than ever before while shifting towards sustainable growth patterns. We are seeing strong investment in apartment buildings and non-residential development, both of which contribute to our long-term vision of a vibrant and resilient city.
“Last year, London reached a new major milestone for the highest all-time construction value on record of $2.21 billion. This new record highlights the hard work and collaboration between City staff, developers, builders, community and trades partners and businesses.”
