2026 is pedal to the metal time for our industry

By Richard Lyall

Feb. 6, 2026

There is a famous expression in English: When the going gets tough, the tough get going. It means that when the situation becomes difficult, the strong will work harder to meet the challenge.

RESCON members are doing exactly that just now. We have just stared down one of the bleakest times in history for the residential construction industry. After a year of slumping sales and market uncertainty, to say it has been a difficult period for builders would be an understatement.

The consequences for the economy, workforce and future homeowners could not be more serious. 

But we are intent on changing the narrative.

At RESCON’s recent annual general membership meeting, we elected a new board. It is full of capable leaders who care deeply about the industry. Congratulations to the new board and thank you to all those whose tenure has come to an end. Your hard work is appreciated. There’s a lot of work to do this year to get the industry on track. But we have the right people to do it.

We heard a lot of good things from Premier Doug Ford at the AGM. He spoke about the importance of working with homebuilders to get shovels in the ground faster. This is important as it indicates the government recognizes the urgency of the moment and the critical need to take action.

The province has made some inroads, including removing the provincial portion of the HST on purpose-built rental housing and upcoming measures to offer rebates for first-time new home buyers.

The province should now take its tax cuts a step further and eliminate the full HST on all new homes, not just for first-time buyers, alongside significant reductions in development charges.

Housing Minister Rob Flack said in his remarks at the AGM that it still takes too long and costs too much to build homes in Ontario, and he is intent on creating conditions for builders to succeed.

Other speakers at the AGM were equally impressive. They included Vaughan Mayor Steven Del Duca and economist Mike Moffatt of the Missing Middle Initiative. Guelph Mayor Cam Guthrie and Barrie Mayor Alex Nuttall participated in a fireside chat led by John Capobianco, senior vice president and senior partner, national public affairs practice lead at FleishmanHillard.

2026 is the year that we must eliminate the major cost barriers on housing, namely the excessive tax burden and development charges that are crippling the industry. We must also modernize and speed up approvals and make the system more transparent and accountable.

We have a third housing report card coming out soon. The first two reports were well-received and clearly articulated what the problems are and the impact of industry job losses on the economy. 

We can no longer be “worst in show” in the developed world with the most expensive housing. The issues must be addressed.

The first priority is to get Bill C-4 through the Senate, which will remove the federal portion of the sales taxes for first-time homebuyers. The provincial rebate will follow when that is passed.

There are other issues that will need to be tackled in the spring federal economic statement and the upcoming Ontario budget. RESCON recently made a pre-budget submission to the Ontario government.

While government’s have been driving companies to get to net zero, our industry is headed for a different net zero - net zero housing and net zero affordability - unless bold action is taken.

It is pedal to the metal time.