We must get reforms done, as builders need certainty

By Richard Lyall

Sept. 14, 2026

As we kick off September, we are confronted with the fact that Ontario remains behind target when it comes to housing starts. Starts are well below the pace required to reach Ontario’s 1.5-million-home ambition by 2031.

Toronto’s July starts fell 10 per cent year-over-year, led by lower multi-unit activity, underscoring the weakness in the province’s largest new-home market.

This speaks to the scope of the housing supply crisis, notwithstanding the noteworthy efforts of our current Municipal Affairs and Housing Minister Rob Flack. On the federal front, Prime Minister Mark Carney and Housing and Infrastructure Minister Gregor Robertson have also stepped up.

Low-rise sales received a boost from the temporary HST rebate, which is positive. However, it must be extended - in line with an earlier report by the Canadian Centre for Economic Analysis which called for a three-year cut of the tax.

The one-year HST rebate also ran into a three-month delay in getting the rules published. The timeline did not help new condo project releases. And it will only stall new low-rise projects if the HST relief is not extended.

The temporary development charge (DC) fix is something that also must be followed up with a new funding formula, linking all levels of government to support growth-related infrastructure and housing. 

We have got to get these reforms done. Builders and consumers need predictability. We can’t continue with fits and starts.

Housing is a major investment for people. It’s also critical for the economy.

Condo starts are the principal failure point, with very low pre-construction sales, high construction and carrying costs, unsold inventory, and tougher financing thresholds leading to delays or cancelation of condominium projects.

Purpose-built rental remains the main offset, but CMHC expects that segment to slow as vacancies rise and rent growth weakens.

Interest rates are holding, even though bonds are concerning. But at least Canada has its fiscal house in order. The surprise GDP growth numbers are positive indeed. 

The immediate policy risk is project viability - not lack of approved land alone. Faster approvals, restraint on DCs and municipal fees, and measures that lower financing/carrying-cost exposure are necessary to move marginal projects back to launch. Otherwise, the supply gap will continue to widen.

Approvals efficiency, in particular, remains a serious problem affecting construction productivity. Currently there are far too many delays and questionable challenges which stall projects and jack up costs.  

There are various initiatives to drive modernization and digitization and inject standardized discipline into the process such as OneOntario, which is good. But Ontario’s capacity to pivot in a timely manner remains a challenge.  

We’ve been pushing this for more than 10 years while other jurisdictions and countries have moved well ahead of Ontario.

This is not a race the tortoise wins. And steps like the recent decision to extend the buyer cooling-off period to 10 days will only have a further chilling effect on projects.

Finally, the prime minister’s goal of attracting $1 trillion in investment is laudable and correct. The good news is that we will need housing to support this. The challenge will be completing the many reforms needed to fix the supply barriers in key markets.  

Our federal pre-budget submission will cover the remaining reforms desperately needed, and focus primarily on reducing costs which are ultimately bourne by the consumers of housing.  

Sadly, while there have been many positive announcements and temporary measures introduced by various levels of government, it is concerning that a city like Toronto cannot house people properly.

A recent Globe & Mail opinion piece noted it will take  a determined shift in policy, and attitudes, to stop the exodus of families with children from Canada’s biggest city. Click here to read the article.