A group of 17 housing and development organizations is calling on leaders in Canada and Ontario to take strong steps to jump-start the country’s stalled housing market. They warn that without quick policy changes, many planned homes might never be built.
In a letter addressed to Prime Minister Mark Carney and Ontario Premier Doug Ford, the Housing Advancement Coalition suggested ways to kickstart construction and tackle the growing housing shortage.
“We must act now through bold measures; the time for incremental steps is behind us,” the coalition states. “The housing sector stands ready to partner with both orders of government to translate these reforms into real homes, real jobs and lasting affordability for Canadians.”
The key recommendation is expanding the federal GST rebate on new homes to include all buyers, reforming municipal development charges, and removing regulatory hurdles that slow down housing projects.
These actions are vital for increasing supply as the housing sector is facing a sharp slowdown despite strong long-term demand, according to industry experts.
Many approved projects across the nation are stuck because building costs have surged significantly, stakeholders say.
A central part of the coalition’s proposals is asking Ottawa and Queen’s Park to temporarily extend the sales tax rebate on new homes to all buyers, not just those buying their first home.
“On a typical $1 million new home, this move would save buyers up to $130,000, allowing seniors to downsize, families to upgrade and first-time buyers as well as younger households to enter the ownership market,” the coalition states.
The recent federal and provincial moves to eliminate sales taxes for first-time buyers represent a positive step but limiting it only to first-timers does not address the overall slowdown impacting the entire housing market.
The coalition argues that broadening this rebate for all buyers for a limited period – like three years – would provide an immediate boost for housing construction.
This approach could revive interest in new homes especially in the struggling condominium sector where most buyers are investors or move-up purchasers rather than first-timers.
The advocates believe this policy would create positive effects throughout the economy by supporting jobs in construction along with related industries such as manufacturing, building materials, and home furnishings.
Premier Ford has previously mentioned that confining tax relief only to first-time buyers is too narrow. He suggests broader tax cuts could stimulate economic activity linked with housing construction.
An additional major recommendation involves reforming municipal development charges.
A 2025 study by CMHC indicated that many municipalities with high development charges are located in Ontario. This highlights how local fees contribute significantly to affordability issues while suppressing new housing supply.
Evidently reliant on these charges for funding infrastructure, municipalities have seen these fees rise sharply over recent years, leading them now adding huge costs onto new homes.
In several large urban areas, development charges can surpass $100,000 per unit – with some even nearing $200,000 for single-family houses.
The coalition urges governments collaborate with municipalities on restructuring this system so that infrastructure costs are spread out more evenly instead of being solely shouldered by new housing developments.
Possible changes could involve deferring development charges until after occupancy or spreading infrastructure expenses across a wider tax base or introducing provincial funding programs aimed at supporting municipal infrastructure needs.
Beyond taxation issues and fees, one of the biggest barriers hindering housing supply lies within complex municipal regulations that delay or block projects from moving forward smoothly.
“Across many of Ontario’s largest urban municipalities, housing delivery is constrained not by zoning or permissions on paper but by cumulative impacts from approval delays coupled with layered technical requirements escalating fees along with discretionary decision-making,” states The Coalition.
“Across many of Ontario’s largest urban municipalities, housing delivery is constrained not by zoning or permissions on paper but by cumulative impacts from approval delays coupled with layered technical requirements escalating fees along with discretionary decision-making,” states The Coalition.
