Ontario Housing Sector Demands Urgent Government Reforms to Boost Supply
Ontario's housing sector is issuing a pressing call to both federal and provincial governments, urging immediate action on tax, financing, and regulatory reforms. This plea comes amid warnings that weak demand and sidelined capital are severely hampering housing delivery, exacerbating persistent supply shortages across the province.
Coalition Highlights Crisis in Development Pipeline
In a joint statement released on Wednesday, the Toronto Regional Real Estate Board (TRREB) and a coalition comprising realtors, builders, rental providers, and housing organizations emphasized that the housing crisis is increasingly characterized by a collapse in confidence throughout the development pipeline. The group stated, "While governments and industry have made meaningful progress on planning reform, funding programs, and streamlining approvals, housing delivery is still constrained by stalled demand, frozen capital, and regulatory uncertainty." They noted that tens of thousands of approved homes across Ontario remain unbuilt, underscoring the urgency of the situation.
Underlying Shortages Persist
The coalition pointed out that the fundamental shortage of housing has not eased, particularly for family-friendly homes. These types of properties are crucial for allowing seniors to downsize, families to move up, and younger households to enter homeownership. The group warned that current market conditions risk future shortages once demand rebounds, stating, "Demand has stalled, capital remains sidelined, and approved projects are not advancing."
Federal and Provincial Recommendations
At the federal level, the coalition proposed several key measures:
- Expanding the GST rebate on new homes to all buyers.
- Modernizing financing tools to support rental and missing-middle housing.
- Adopting a practical approach to mortgage qualification rules.
- Amending the foreign buyer ban with guardrails tied to new supply.
For the Ontario government, the recommendations include:
- Reforming development charges.
- Expanding the provincial HST rebate on new homes beyond first-time buyers.
- Ending exclusionary zoning in large municipalities.
- Removing municipal barriers that continue to delay housing delivery.
The group asserted, "We must act now through bold measures; the time for incremental steps is behind us." These recommendations were formally submitted last week in a letter to Prime Minister Mark Carney and Ontario Premier Doug Ford.
Broader Implications for the Housing Market
The housing sector's warnings highlight a critical juncture for Ontario's real estate landscape. With approved projects languishing and capital investment frozen, the potential for future housing shortages looms large. The coalition's call for swift government intervention underscores the need for comprehensive reforms to stimulate demand, unlock capital, and accelerate construction efforts. As the province grapples with these challenges, the outcome of these recommendations could significantly impact housing affordability and availability for years to come.
