A coalition of prominent housing sector organizations is calling on all three levels of government to work together to reduce construction costs, lower taxes on new homes, embrace innovation and speed up approvals to help kick-start the ailing residential construction sector.
Specifically, they want legislators and policy-makers to modernize outdated tax rules and extend the GST/HST exemption on new homes up to $1.5 million for homebuyers, reflecting current market realities, particularly in major urban centres, to boost construction of more homes.
“Ontario is facing a housing emergency. Projects are stalling, builders are cancelling developments, and families and individuals are being priced out of the market,” the organizations say in a joint statement.
“As the Ontario and federal governments prepare to release their Fall Economic Statement and 2025 Fall Budget, respectively, our message is urgent: bold, co-ordinated action is needed to boost housing construction, lower costs, and bring affordability back within reach for residents.”
The coalition consists of 16 organizations representing builders, realtors, business groups, trade associations, not-for-profit and rental providers. The group met in early October to discuss the grim situation facing the residential construction industry and compiled a list of requests.
Some of the organizations include the Toronto Regional Real Estate Board, Federation of Rental-housing Providers of Ontario, Toronto Region Board of Trade, Ontario Real Estate Association, Building Industry and Land Development Association, Habitat for Humanity GTA, Greater Toronto Apartment Association and the Residential Construction Council of Ontario.
Companies involved include R-Labs, Assembly Corp., Caivan Communities, Terra Modular, Menkes Developments, Horizon Legacy and Clark Construction Management.
“Housing is more than just shelter; it’s the foundation of our economy and the heart of our communities,” the statement reads. “Together, with governments at all levels, we must move swiftly to unlock housing supply, cut costs, and restore affordability by accelerating ownership and rental housing delivery.”
The organizations note there has been good work done by the federal, provincial and municipal governments regarding policy developments, zoning reform and funding programs to encourage more housing construction.
They cite the recently introduced Fighting Delays, Building Faster Act, 2025, as well as the Housing Accelerator Fund, the Apartment Construction Loan Program, Build Canada Homes, the Building Faster Fund, Municipal Housing Infrastructure Program, and reforms to permit as-of-right construction of multi-plexes on single lots as positive steps for the industry.
The statement indicates the organizations also recognize that potential disruptions impacting the housing ecosystem that are outside the direct control of governments and industry, such as trade wars, geopolitical tensions and economic uncertainty, need to be considered “as we navigate an uncertain environment at the macro level.”
However, the organizations maintain more action is needed by governments in light of the fact housing remains the backbone of Canada’s economy, supporting more than 1.2 million jobs and contributing over $143 billion in economic activity yearly to Canada’s Gross Domestic Product.
They note rising costs, difficult regulatory environments, economic uncertainty, and constrained supply have slowed new housing starts and home purchases, putting tens of thousands of skilled trade jobs at risk, which will also have a spin-off impact on economic activity.
“By reducing construction costs, attracting investments, and aligning tax policy, zoning, and approval systems, governments at all levels can restore confidence, protect jobs, and support innovation at the speed, and scale Canadians urgently need,” their joint statement reads.
The coalition wants governments to recognize housing construction as a core driver of employment and GDP and adopt a framework to preserve industry job creation, while also modernizing outdated tax rules to reflect current market realities and encourage new construction.
Additionally, organizations want governments to cut costs to homebuyers by working with the industry to modernize the fee structure for new housing, which is inflating costs and constraining supply.
Support for modern construction methods is also on the coalition’s radar, including panelized systems, modular building, robotics and other emerging technologies.
The organizations maintain the methods need to be supported by an innovation policy framework created in partnership with the industry that incentivizes early adopters and allows for investments in Canadian companies.
The coalition is also requesting governments end outdated zoning restrictions to permit gentle density and a wider mix of housing types, especially missing-middle and multi-unit dwellings in more communities.
Meanwhile, the organizations call on governments to encourage programs that incentivize private capital, both investment and philanthropic, for rental and ownership housing to accelerate market and non-market construction, and request that the Multiple Unit Residential Building tax incentive be reintroduced.
“The housing sector stands ready to partner with every level of government,” the organizations state. “Together, we can reignite momentum, rebuild confidence, restore affordability through partnership, innovation, and investment, and deliver the homes our communities urgently need.”
