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Most municipalities in the Greater Golden Horseshoe, including the City of Toronto, have been given a failing grade in a comprehensive new report<\/a> done by the University of Ottawa\u2019s Missing Middle Initiative for the Residential Construction Council of Ontario (RESCON)<\/a>.<\/p>\n Disturbingly, of the 34 municipalities that were graded, 22 received an F, another five received a D, and the other seven municipalities received a C or higher. Brantford had an A-plus and Milton an A. Municipalities were graded in five categories related to housing starts and sales.<\/p>\n \u201cThe findings of this report are troubling and should set off the alarm bells for policymakers across all three levels of government,\u201d explains RESCON president Richard Lyall. \u201cHousing projects have been shelved and the industry has hit a wall. The outlook is bleak, and we are trending in the wrong direction. We need governments to take concrete action to lower the tax burden and modernize the process to kick-start the industry. Our economy will be in dire straits if we do not act quickly.<\/p>\n The assessment is based on data obtained from Canada Mortgage and Housing Corporation and Altus Group. Researchers did a deep dive on housing starts, sales and industry employment across municipalities in the Greater Toronto Area and Greater Golden Horseshoe region over the first six months of 2025, relative to the same time period in the previous four years (2021-25).<\/p>\n In the first six months of this year, housing starts were down an average of 40 per cent in the 34 municipalities. Condo apartment starts over the first six months were down 54 per cent relative to 2021-24 while purpose-built rental starts were up eight per cent. Starts for everything other than apartments were down 42 per cent, showing the weakness is not just confined to condos.<\/p>\n In the City of Toronto, starts in the first six months of 2025 were down 58 per cent and sales declined 91 per cent compared to the same period between 2021-24, causing employment to fall by an estimated 10,209 jobs.<\/p>\n \u201cBoth the federal and provincial governments have committed to doubling housing starts,\u201d says Mike Moffatt, an economist and founder of the Missing Middle Initiative. \u201cUnfortunately, housing starts are falling, and new home sales show that further declines in starts are about to come. All three orders of government must act to address the housing crisis.\u201d<\/p>\n The research comes at a particularly important time, as housing unit sales and starts have all but ground to a halt. Pre-construction sales are considered a prime indicator of the market\u2019s health. Pre-construction sales of condo apartments are down 89 per cent and ground-oriented sales are down 70 per cent, a clear indication that Ontario\u2019s housing situation will get worse before it gets better, and that market weakness is not isolated to the condo market.<\/p>\n Industry employment has also taken a major hit. The reduction in housing starts in the municipalities over the first six months of the year, relative to 2021-24 averages, translates into 24,195 fewer person-years of employment.<\/p>\n \u201cWe are in the midst of the worst housing crisis in a generation,\u201d adds Lyall. \u201cWhile the situation is bad it could get worse if governments fail to reduce the tax burden on new housing.\u201d<\/p>\n