Issuing a warning
Ontario Construction News staff writer
The London Home Builders’ Association is sounding the alarm about increasing job losses and an ongoing slowdown in residential construction, urging immediate government intervention to prevent further economic harm in the area.
A recent survey from the LHBA indicates that over 60 per cent of builder, subtrade, and supplier members have let go of employees in the past year, with more layoffs anticipated in the coming six months. Builders rated their confidence in the market at a mere 3 out of 10 on average, with some stating they haven’t built a new home since 2023.
This downturn is evident in employment statistics. Since last September, around 5,800 jobs have vanished from the construction sector in the London region. The association noted that this level of job loss across the industry has significantly impacted the local economy – akin to nearly half of Western University’s workforce.
Even with this slowdown, builders are trying to keep their teams intact for when the market picks up again. However, the LHBA cautions that prolonged inactivity might drive skilled workers away from residential construction or into early retirement. With Ontario facing an expected retirement rate of about 20 per cent within its construction workforce by 2034 – and only half of those positions likely to be filled – labor shortages could escalate and further limit housing availability.
The current slowdown is also changing market dynamics. Many builders have pivoted towards renovation projects, intensifying competition among contractors already dealing with diminished demand. Approximately 75 per cent of renovators surveyed reported clients are cutting back on projects due to concerns over affordability.
The repercussions are reaching through to suppliers as well. Local building material providers reported revenue drops of up to 60 per cent between 2024 and 2025, with over half predicting additional declines in 2026.
The association points out that this slowdown could impact municipal finances in London too. With fewer housing starts happening, the city will see reduced assessment growth and lower development charge revenues; both crucial sources for funding infrastructure and services.
Beyond just construction, the LHBA highlights wider economic implications. Using data from the Canadian Real Estate Association, it estimates that each unbuilt home translates into about $124,200 lost in spinoff economic activity.
The association is urging all levels of government to take action by eliminating provincial and federal sales taxes on new home building and reducing municipal development charges. If changes aren’t made soon, it warns that fewer homes will be constructed – leading governments to ultimately receive less revenue.
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