By Tom Parkin
January 14th, 2025
BURLINGTON, ON
Targets are not being met.
Some readers took exception to information we published from Data Shows, written by Tom Parkin who is certainly left of center in terms of his career. We have a reader who suggests that his “perspective can hardly be considered neutral or objective” apparently not realizing that Parkin lays out facts and then applies a point of view.
Doug Ford’s housing failure cost billions in lost investment last year. Policies hitting targets would have drawn about $50B in housing investment over the past 12 months.
Doug Ford’s failure to hit housing targets has cost the Ontario economy about $20 billion in housing investment and the many jobs that would flow from it, a Data Shows analysis estimates.
Ontario municipalities approved building permits to construct 7,669 housing units in November, according to Statistics Canada data released on January 10, far below the needed pace of 12,500 a month.
The Ontario government’s Housing Affordability Task Force in 2022 estimated a supply of 1.5 million new housing units would needed by 2031 to bring price balance to the housing market. That ten – year target translates into 12,500 units a month.
Hitting targets would add $20B of investment a year
In November 2024, projects receiving building permit approval planned to invest $2.59 billion to construct 7,669 housing units, an average cost of $337,350 per unit.
Policies spurring 12,5000 units a month would have generated $4.22 billion in investment in November, $1.63 billion more than the actual planned investment, based on the same average per unit cost.
The planned investment to construct the housing receiving building permit approval in the twelve months ending November 2024 was $29.5 billion. Based on average costs, investment to start 12,500 in each of the past twelve months would have generated $50.6 billion in housing investment, $21.1 billion more.
Policies spurring an annual investment of $50.6 billion to reach housing goals would add thousands of skilled jobs in the residential construction sector, reducing unemployment and boosting economic growth and public revenue.
Ford PCs’ housing record among Canada’s worst
The Ontario Ford PC government has missed its housing starts targets every month since they were set in February 2022.
Ontario’s housing record is among the worst in Canada, with several other provinces regularly spurring starts far above Ontario’s level and above Ontario’s target, on a per capita basis.
The Ford government has refused to make any public investment in housing construction or take key steps to ensure municipalities allow higher density and more efficient land use.
BC provides proof of concept
The BC government has been a consistent top performer in housing starts, proving that the right policy mix can direct private investment to meet social priorities.
BC’s policy mix has included streamlining approval processes, reducing barriers to density, directing public investment, encouraging non-profit and cooperative construction, and pushing more constructed units into the marketplace.
The BC NDP’s approach shows that well-constructed policy can spur housing industry investment, suggesting a coordinated effort in other sectors could revive the innovation and productivity needed to boost growth.
Well, I agree that Parkin’s career is left of centre – not that that invalidates his point of view. But, in the previous article referenced, I am still searching for the facts. Seems that its high on polemic but awfully “fact lite”.
Edited
You have such an eloquent turn of phrase, ‘polemic.’ I’m gonna have to look that up; I just thought he was an…..