The housing market in the London, Ontario area saw a remarkable surge in August 2024, with housing starts more than tripling compared to the same month in 2023. According to the Canada Mortgage and Housing Corporation (CMHC), 470 housing units were initiated in August, a significant jump from the 151 units recorded in August 2023. This 211% increase places London as the third-highest region in Ontario for new housing starts, trailing only Oshawa and Peterborough.
Mayor Josh Morgan attributes this growth to improved economic conditions and strategic planning by the city council. He noted that, despite the economic challenges of 2023, London remained proactive by approving housing developments and preparing for an economic shift. “2024 is shaping up to be a good year,” Morgan said, emphasizing the importance of the diverse housing types being built, including rental properties and townhomes, which will help alleviate pressure on the city’s infrastructure.
The timing of this surge coincides with the Bank of Canada’s recent decision to reduce interest rates, a move that has brought relief to homebuyers, especially those with variable-rate mortgages. Mayor Morgan expressed optimism that further rate cuts would continue to benefit the housing market and ease affordability concerns for London residents.
The increased activity in the housing sector also aligns with Ontario’s broader housing goals. The province’s $1.2 billion fund for infrastructure, including water and sewer systems, aims to support cities in meeting housing demands. London has already broken ground on 1,864 homes as of July, though it is still short of its 2024 target of 3,917 units.
Jared Zaifman, head of the London Home Builders’ Association, described the recent growth as a positive sign, especially after the slow pace in 2023. He anticipates that the market will continue to expand, particularly in single-family homes and townhouses, which are easier to build and more affordable for homebuyers.
With a growing population and a city council that prioritizes housing approvals, London is positioning itself as a leader in Ontario’s housing market. The collaboration between the city and developers has created a strong foundation for sustained growth in the years ahead.
