Announcements have been made but regulations are needed

By Grant Cameron

May 6, 2026

"Hurry up and wait." That idiom seems to sum up the situation with the residential construction industry these days.

A flurry of activity took place at the end of March, with the announcement by the federal and provincial governments of temporary tax breaks on new housing as well as inking a landmark deal to support the reduction of development charges (DCs). Meanwhile, the Ontario government has also tabled legislation to streamline approvals and reduce barriers to homebuilding.

However, we are still waiting for accompanying regulations to be drafted. Hopefully this will happen soon. The longer it takes, the longer uncertainty looms over the market.

We noted in a column in Storeys that there is a growing recognition across Canada that the housing crisis demands urgent action. The column pointed out that the senior levels of government have begun to respond but they still amount to nibbling at the edges of a much deeper problem, namely the escalating burden of government-imposed costs on new housing.

In a Toronto Sun column, we also highlighted that, while the Ontario and federal governments have taken meaningful action to reduce costs, some municipalities - such as Clarington - are undermining the whole process by dramatically hiking planning and development fees.

In the 2026 Spring Economic Update, we learned that the feds will be providing provinces and territories with $1.7 billion through the Improving Housing Supply Act, to remove barriers and accelerate homebuilding, including reducing development fees and levies on new home construction.

Rules will also be streamlined and building codes will be modernized to make it easier to construct new homes, including factory built and modular housing. In addition, measures were announced to boost apprenticeship completion rates and hire up to 100,000 new skilled trades workers by 2033.

Development charges

RESCON has been calling for DC fee cuts, so it was welcome news that the feds and province had inked a deal to cut them.

We noted in an article in Ontario Construction News that DCs have been on a trajectory that is unsustainable and economically counterproductive.

In a column in Canadian Real Estate Wealth, we explained that DC charges on housing are a systemic, self-inflicted wound and must be addressed. In Real Estate Magazine, RESCON president Richard Lyall said in a column that governments agreed to spend a total of $8 billion over the next 10 years to help cover infrastructure costs for municipalities that lower DCs and it is now up to municipalities to do their part and support those reductions.

Effect on economy

In a Canadian Contractor column, we highlighted that homebuilding is our economic engine, and in a column in Canadian Forest Industries we examined the effects of the housing downturn on the forestry and wood products industries.

RESCON president Richard Lyall was on a podcast with Brian Crombie that delved into what it will take to fix the housing crisis.

What’s happening in Alberta

In a Daily Commercial News column, we looked at what Alberta is doing right on the housing front and how Ontario can tap into what’s been done there. The Western province seems to have found the right formula.

ConTech & PropTech

We examined the benefits of ConTech & PropTech in a column in On-Site magazine. Presently, we have a system stuck in the past and must adapt with tools and technology as a foundational strategy for the future of the industry.

Women in the trades

With more than 20 per cent of the workforce expected to retire by 2032, we wrote in a column in Senso magazine that recruiting and retaining women is not optional - it is essential.

World Cup restrictions

RESCON wrote a letter to Toronto Mayor Olivia Chow about restrictions being implemented by the City of Toronto during FIFA World Cup events. RESCON managed to secure a number of important changes to these restrictions to lessen the impact on construction.

New report

Meanwhile, a new report done for RESCON by the Missing Middle Initiative indicates that housing starts decreased dramatically in 34 municipalities studied across the province in 2025, while job losses in the industry continue to grow. The analysis revealed that condo apartment starts were down 52 per cent relative to the 2021-24 averages, while ground-oriented housing starts declined 43 per cent, showing that housing weakness in municipalities - with a few exceptions - continues to extend well beyond the condo market.