Some encouraging progress for Ontario’s housing sector

By Richard Lyall

July 6, 2026

While global headlines continue to be dominated by uncertainty and disruption, there have been several encouraging developments closer to home for Ontario’s residential construction industry.

Most notably, the expanded HST rebate for new homes has officially been launched following a lengthy wait, and both the federal and provincial governments have begun rolling out funding through the Development Charge Reduction Program (DCRP) to municipalities committed to significantly lowering development charges.

RESCON worked closely with all levels of government to support the implementation of the Enhanced Sales Tax Rebate for all new homebuyers.  Regulations have now been released by the federal and provincial governments.

With the necessary regulations now in place, purchasers can assign the full 13 per cent HST rebate, along with the Ontario top-up, directly to the builder. The benefit is then applied at closing, reducing the final purchase price for buyers.

To help stakeholders understand the program, the federal government has released an infographic outlining the process, while the Canada Revenue Agency has published technical regulations here. The province has published technical regulations here. We also plan to host a member webinar in the near future to provide further clarity on the program and its implications.

Early indications suggest the rebate is already having a positive impact. According to reports, while some buyers initially delayed purchasing decisions following the announcement in March, new home sales in the GTA have since gained momentum.

The DCRP, meanwhile, should provide an additional boost to housing construction activity.

I recently attended an announcement with Premier Doug Ford, federal Housing and Infrastructure Minister Gregor Robertson, and Toronto Mayor Olivia Chow, where it was revealed that Toronto will receive $1.5 billion through the program. The funding recognizes the city’s commitment to reducing development charges by 40 to 60 per cent, depending on housing type, for a period exceeding three years.

The City of Toronto estimates these reductions will save approximately $83,000 on the construction of a new single or semi-detached home. When combined with the 13-per-cent HST reduction, the overall cost of building a new home in Toronto could decrease by up to  $200,000 in key Ontario markets like Toronto.

We still have a huge challenge facing us in ensuring that the temporary tax rebates and DC reductions are made permanent. That is because the taxation of new housing in Ontario increased way beyond other provinces and states in North America apart from B.C. Then there remains the fact that the approvals process needs to be modernized, streamlined and digitized according to province-wide standards. 

Apprenticeship report

A new independent report commissioned by RESCON highlights the need for a fundamental overhaul of Canada’s apprenticeship system.

The report concludes that the current model focuses largely on providing opportunities rather than actively supporting participation and completion.

The study recommends incorporating behavioural science into apprenticeship design and delivery, so policymakers and industry leaders can develop more effective interventions that improve completion rates and encourage more young people to pursue careers in the skilled trades.

Apprenticeship completion rates in Canada have remained stagnant since 2013, with only about 20 per cent of registered apprentices successfully completing their programs.

Housing summit

We have started to line up speakers for virtual Housing Summit 6.0, which is scheduled for Wednesday, Sept. 23 from noon to 5 p.m.

The summit will examine whether the housing reforms introduced to date are delivering the results needed to meet housing supply targets.

You can register for the summit here.

Event participation

I recently participated in a roundtable on digital transformation, AI and robotics in Canada’s construction sector at George Brown Polytechnic's Limberlost Place in Toronto.

The invitation-only event brought together leaders from construction, government, academia, and the technology sector to explore how emerging technologies can help address ongoing productivity, competitiveness, and workforce challenges facing the industry.

The following day, I participated in a closing Site Summit housing panel hosted by Site News, an event separate from the roundtable, that was held at George Brown’s Waterfront Campus. The panel examined how developers and municipalities are adapting to today’s evolving housing landscape.

These conversations are critical as the industry continues to navigate economic pressures while embracing innovation and new approaches to delivering homes.