Keep the pedal down on housing reform

By Richard Lyall

for Canadian Contractor

Oct. 8, 2026

For years, governments have been all talk and no action when it comes to housing affordability. They’ve made some big promises but never followed through with real deeds. Meantime, home prices soared, rents climbed and the dream of home ownership drifted out of reach for many.

At long last, that is beginning to change.

Leaders are beginning to acknowledge what builders, economists and housing advocates have long known: excessive taxes, fees, levies and regulatory delays have driven up the cost of housing.

The result has been a welcome shift in public policy, via measures such as GST and HST rebates on new homes, development charge relief programs and efforts to streamline approvals.

The question is whether those reforms are working.

The issue was front and centre at a recent housing summit hosted by RESCON where industry leaders, policymakers, planners and pollsters assessed the impact of recent policy changes.

The consensus?

Canada has made meaningful progress on housing reform, but the country remains far from solving its affordability and supply crisis.

“Good stuff has happened,” Ian Lee, associate professor at the Sprott School of Business at Carleton University, told the audience. “We’re going in the right direction, but we’ve got to do more.”

His comments captured the essence of the discussions.

Recent government actions have helped. The GST and HST rebate measures, in particular, have moved the needle. Evidence presented at the summit suggested tax relief has helped revive parts of the pre-construction market and support demand that had been sidelined by affordability pressures.

But the consistent message was that the industry continues to face challenges. Affordability still remains out of reach for many, and housing supply continues to lag demand in many markets.

In many parts of the Greater Toronto Hamilton Area and British Columbia's Lower Mainland, the annual income required to secure a mortgage on a typical home remains far out of step with actual household incomes. The mathematics simply do not work for many families in those regions.

In the GTA, for example, it would take six years for someone earning over $100,000 to save the minimum downpayment of $84,325 on a $1,093,254 home - and 15 years, seven months to put down a 20-per-cent downpayment of $218,651.

The disconnect between housing prices and earning power is perhaps the clearest indication that Canada's affordability crisis is far from resolved.

For first-time buyers, the challenges extend beyond monthly mortgage payments. Saving for a down payment has become a multi-year exercise. For many, accumulating the funds necessary to enter the housing market can feel like climbing a mountain that grows taller every year.

That reality has consequences that reach well beyond the housing sector.

Many young people are relocating to more affordable jurisdictions within Canada. Others are leaving the country altogether in search of opportunities that seem increasingly out of reach at home. Losing talented workers, skilled professionals and ambitious young families because they cannot afford housing represents a threat to Canada's broader economic future.

It is also a challenge that intersects with the country's nation-building ambitions.

Whether the objective is expanding energy infrastructure, strengthening defence capacity or supporting economic growth, one requirement remains constant: people need places to live. A country cannot build major projects, attract investment or maintain economic competitiveness if workers cannot afford housing in the communities where opportunities exist.

There are encouraging signs. As several speakers at the RESCON summit highlighted, conditions typically associated with a housing recovery are beginning to emerge. Interest rates have moderated from their peaks, inventory levels are tightening and home prices have softened. Yet buyers remain cautious because economic uncertainty continues to weigh on household decisions.

Their observations underscore the central paradox facing housing policy today. Reform is working, but not at the scale or speed necessary to resolve the crisis.

The good news is that governments, industry stakeholders and policy experts largely agree on what needs to be done. Federal and provincial housing ministers deserve credit for showing leadership and taking meaningful steps to address long-standing structural problems.

The key is implementation.

Announcements are not results. Temporary rebates are not permanent affordability solutions. Development charge relief programs are helpful, but long-term funding models for growth-related infrastructure are still needed. Policies designed to reduce costs must be administered effectively and delivered quickly. Otherwise, their intended benefits never fully reach homebuyers.

Progress is being made. But temporary measures must be turned into permanent ones. Reforms that reduce costs must be accelerated.

The path forward is clear. The solutions are known. What remains is the political will to finish the job.

Richard Lyall is president of the Residential Construction Council of Ontario (RESCON). He has represented the building industry in Ontario since 1991. Contact him at media@rescon.com.