Housing targets at risk without sustainable construction workforce

By Grant Cameron

for Daily Commercial News

Sept. 29, 2026

While governments have taken significant steps to boost housing supply, much more work remains to be done, says Richard Lyall, president of the Residential Construction Council of Ontario (RESCON).

Speaking at the opening of RESCON’s recent Housing Summit 6.0, Lyall praised federal and provincial governments for introducing measures aimed at increasing housing construction. However, he also warned the progress could be derailed if there is not a sustainable workforce.

“We commend all levels of government for their efforts,” Lyall told attendees. “But the success of these initiatives is directly tied to skilled labour supply and our ability to continue delivering housing.”

The annual summit brought together industry leaders, policy-makers, economists and housing experts to discuss the current state of the housing market, emerging trends and potential solutions to ongoing affordability challenges.

Lyall singled out Ontario Housing Minister Rob Flack for his leadership on housing issues, describing him as one of the most consequential housing ministers the province has seen in decades.

However, he noted, despite recent government action, Ontario’s housing sector continues to face significant structural challenges. Affordability remains out of reach for many households, housing supply continues to lag demand in many markets, and uncertainty in the residential construction sector has forced some workers to leave the homebuilding industry altogether.

He said the market slowdown has reduced some immediate labour pressures, but a much larger workforce challenge could emerge once market conditions improve and housing production accelerates.

“As a generation of construction workers approaches retirement, and others have left the residential construction sector, we face potential labour shortages down the road,” he said. “We must determine now how we are going to meet that need.”

The warning reflects a growing concern across the construction industry that demographic shifts and workforce attrition could limit the industry’s ability to ramp up housing production in the years ahead. Without sufficient skilled trades, housing targets could become increasingly difficult to achieve.

Lyall said governments have introduced several measures to support residential construction and improve affordability for consumers but noted many programs and incentives remain temporary. While welcome he argued successful measures should be made permanent and predictable.

He reaffirmed RESCON’s commitment to supporting housing policy development through research and advocacy while continuing to work with governments and industry partners to identify solutions that will increase housing supply.

Flack told the summit the government has made significant progress on the housing file. One of the government’s primary objectives, he noted, has been reducing the time required to obtain approvals and permits.

He pointed to a series of legislative changes contained in Bills 17, 60 and 98, which were designed to streamline planning and development processes.

The government’s focus, he added, has been to lower the time it takes to get building permits approved while removing other obstacles that slow construction.

In addition to reducing delays, the province has worked to address construction costs, which Flack described as a major contributor to housing affordability challenges.

A key initiative was the province’s partnership with the federal government to eliminate the HST on qualifying new homes, he said.

While some critics questioned whether the rebate would have a meaningful impact, Flack said early results suggest the policy is working.

According to data he shared, new single-family home sales in the GTA tripled in July and August compared with the same period a year earlier. Across Ontario, new home sales increased by approximately 130 per cent year-over-year during the second quarter of 2026.

“We got off to a bit of a slow start because some federal regulations needed to be put in place, but they’re working, and we look forward for continued acceleration here in the fall,” said Flack.

Another major initiative highlighted by Flack was the Development Charge Reduction Program, a cornerstone of the province’s Canada-Ontario housing partnership.

The $8.8-billion program is intended to encourage municipalities to lower development charges, which Flack described as a significant hidden cost embedded in the price of new homes.

He pledged to continue working with municipal leaders, housing stakeholders and industry associations to identify additional ways to reduce costs and speed up construction.

The goal, he said, remains straightforward: create the conditions that allow builders to build more homes.

“Our focus,” he said, “is continuing to keep costs down and lower the time it takes to get housing built in this province.”