en.Wedoany.com Reported - Housing starts in Alberta, Canada, reached 54,858 units in 2025, a 15% increase from 47,827 units in 2024, setting a new historical record. According to data from the Canada Mortgage and Housing Corporation (CMHC), housing starts in Ontario during the same period fell from 74,573 units to 65,376 units, a decline of over 12%. The government projects a further drop to 64,800 units by 2026.
The growth in construction activity in Alberta is linked to the province's efforts to eliminate cumbersome regulations, reduce municipal fees, and relax construction rules. The province has no provincial housing sales tax, and municipal approval processes are relatively fast. The Ontario Residential Construction Council's Housing Summit highlighted that 36% of the cost of new homes in Ontario comes from taxes, with development charges in Toronto increasing by 5,186% over the past 25 years.
The federal and Ontario governments recently announced the removal of the Harmonized Sales Tax (HST) on new homes priced below $1 million and introduced tax reductions for homes above this threshold, with first-time homebuyers eligible for extended benefits. Both governments also pledged $8 billion over the next decade for infrastructure funding aimed at reducing municipal development charges.
In Ontario, the house price-to-income ratio has risen from approximately 3 times in 2000 to between 6.5 and 7.5 times today. CMHC estimates that by 2035, housing prices in Toronto will increase by 60%, while prices in other parts of Ontario will rise by 50%. Construction approval timelines in Ontario are among the slowest globally, with builders often experiencing delays spanning several years.
The Ontario Residential Construction Council has recommended digitizing the planning approval process, adopting off-site construction methods, and suspending provincial and municipal land transfer taxes for three years. While Alberta is advancing construction through streamlined approvals and reduced fees, Ontario continues to face pressure in housing supply.
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