Ontario’s housing crisis has become a topic of intense debate, with politicians promising ambitious goals like 1.5 million new homes by 2031. On paper, it sounds promising, but the reality paints a far bleaker picture. Affordable housing is slipping further out of reach, and while high costs and policy challenges are part of the equation, there are deeper, hidden barriers at play—roadblocks that rarely make the headlines.
In my latest video, I dive into these under-the-radar obstacles, breaking down why Ontario’s housing goals are faltering and what it means for first-time buyers, developers, and the future of real estate in the province.
Why Affordable Housing Feels Out of Reach
Ontario’s target of 1.5 million homes by 2031 requires about 150,000 homes to be built annually. However, current projections for 2024 sit at just 81,000 starts—barely half the required number. Worse yet, this isn’t an isolated shortfall. Year after year, the gap between what’s promised and what gets built continues to widen. The recent Fall Economic Statement lowered housing expectations for the next four years, essentially admitting that Ontario isn’t on track to meet its goals.
What’s causing this disconnect? While funding challenges and public policy are obvious factors, two major hidden barriers are often overlooked: the skilled trades shortage and the labyrinth of zoning regulations.
Enemy #1: The Skilled Trades Shortage
Building homes isn’t just about securing financing or permits—it requires skilled tradespeople to turn plans into reality. And Canada faces a severe deficit in skilled trades, from carpenters to electricians and plumbers. Developers are putting projects on hold simply because they can’t find the workers to complete them.
This problem is exacerbated by Canada’s immigration policies. While efforts are focused on attracting students and highly educated professionals, less than 1% of all permanent residents since 2015 have entered through the Federal Skilled Trades Program. Programs like Express Entry exist to address this gap but aren’t prioritized or effectively marketed to attract the skilled labor we desperately need.
Imagine reallocating some of our immigration recruitment efforts toward skilled trades. Not only would this help fill labor shortages, but it would also remove a critical bottleneck in Ontario’s housing market.
Enemy #2: Zoning and Regulatory Hurdles
Even when skilled trades are available, navigating zoning regulations can feel like an impossible task. Toronto’s 2023 zoning reforms aimed to encourage “missing middle” housing—smaller multiplexes on single lots. But in practice, inconsistent rule interpretation often derails projects.
For instance, a small developer proposed converting a duplex into a fourplex—a perfect fit for the new zoning rules. However, city staff classified the project as an “apartment building,” triggering a cascade of additional requirements, from parking to landscaping. These complications led to delays, increased costs, and frustration, effectively making the project unviable.
This isn’t an isolated case. Smaller developers often lack the resources to navigate such bureaucratic nightmares, leaving only the largest players to continue building—at higher prices passed on to buyers.
The Ripple Effect of Inaction
If these barriers remain unaddressed, the consequences are clear: housing supply will continue to lag, prices will climb, and affordability will remain out of reach for many. First-time buyers will either be pushed into renting indefinitely or forced to leave the province entirely. The ripple effects go beyond individuals—businesses will struggle to attract talent, communities will miss out on growth, and the overall cost of living will keep rising.
What Needs to Change
Fixing Ontario’s housing crisis requires more than just lofty promises. Meaningful change involves:
- Prioritizing skilled trades in immigration policies.
- Simplifying and streamlining zoning regulations.
- Providing accessible, straightforward funding programs for smaller developers.
- Rethinking development charges to encourage more diverse housing options.
Affordable housing is a complex challenge, but with focused action, progress is possible.
Watch the Full Breakdown
For a deeper dive into these hidden barriers and their impact on Ontario’s housing market, check out my latest video:
Why Ontario’s Housing Crisis Won’t End Anytime Soon
Ontario’s housing crisis isn’t just a numbers game; it’s a web of barriers that requires systemic solutions. By tackling under-the-radar obstacles like the skilled trades shortage and zoning red tape, we can begin to bridge the gap between housing goals and reality. Whether you’re a first-time buyer, a developer, or just someone concerned about the future of housing in Ontario, reach out – staying informed and pushing for meaningful change is key.
