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Ontario’s Housing Slowdown Sparks Job Losses – What It Means for Homebuyers and the Economy

Ontario’s housing market is hitting the brakes—and the ripple effects are starting to show. According to the Residential Construction Council of Ontario (RESCON), the slowdown in home construction is triggering mass layoffs in the trades, threatening thousands of jobs and putting pressure on the province’s economy.
September 8, 2025 by
Ontario’s Housing Slowdown Sparks Job Losses – What It Means for Homebuyers and the Economy
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What’s Happening in Ontario’s Housing Market?

  • Housing starts have stalled, with Ontario missing its 2024 goal of 125,000 new homes—delivering only about 94,000.
  • The province is now off track to meet its ambitious target of 1.5 million homes by 2031.
  • Unemployment is climbing, hitting 7.8%, the highest since 2012 (excluding the pandemic).

Richard Lyall, CEO of RESCON, warns:

“We’re in the process of laying off thousands of people right now… A year from now, those working on high-rise projects will be unemployed.”

Why Is This Happening?

Several factors are squeezing the construction industry:

  • High interest rates are making financing projects nearly impossible.
  • Rising material costs, driven by tariffs on steel and aluminum, are pushing budgets over the edge.
  • Policy delays, like stalled HST relief for first-time buyers, are hurting demand.

Even Premier Doug Ford admits:

“The Bank of Canada has to lower interest rates… We’re trying to create the environment for builders to get shovels in the ground.”

The Domino Effect: Jobs and Affordability

  • Tradespeople, planners, and project managers are facing layoffs.
  • If construction slows now, future housing supply will shrink, driving prices back up in a few years.
  • Ontario needs 2 million homes in the next decade—but the pipeline is drying up.

What’s the Solution?

Experts suggest:

✅ Cutting provincial taxes and fees to reduce costs for builders.

✅ Investing in “missing middle” housing—smaller, modular, and rental projects that can be built faster.

✅ Aligning all levels of government to unlock funding and incentives.

Housing advocate Mark Richardson points to prefabricated projects as a game-changer:

“We can make hundreds of smaller infill projects… and create manufacturing jobs in Ontario.”

Bottom Line

Ontario’s housing slowdown isn’t just about fewer homes—it’s about jobs, affordability, and the future of the market. If interest rates drop and governments step up, we could see a rebound. Until then, buyers and investors should stay alert—opportunities may arise as policies shift.

📞 Contact Lendworth Canada today to explore your mortgage options and stay ahead of market changes.

✅ Your next move could save you thousands.

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