We must finish the job

By Richard Lyall

for Canadian Contractor

Sept. 22, 2026

For years, Ontario's housing crisis was treated as an unfortunate but inevitable reality. Governments talked about affordability, the industry warned about supply shortages, and home ownership drifted further out of reach for ordinary families. Meanwhile, taxes, fees and red tape continued to pile onto the cost of every new home.

That is finally beginning to change.

Governments at both Queen's Park and Parliament Hill deserve credit for acknowledging a simple truth that the housing industry has been saying for years: if you make housing more expensive to build, you make housing more expensive to buy.

The introduction of the temporary HST rebate on new homes and the Canada-Ontario Development Charge Reduction Program (DCRP) represent some of the most significant housing reforms we have seen in years. Both measures directly address government-imposed costs that have undermined affordability and weakened the economics of building new housing.

The early results are encouraging.

The HST rebate, which provides up to $130,000 in relief on qualifying new homes, has helped stimulate market activity at a time when the industry desperately needed a boost. New home sales surged following its introduction, demonstrating that affordability measures can influence purchasing decisions and help restore confidence.

Likewise, the DCRP has begun addressing one of the biggest obstacles to housing construction. Development charges have increased dramatically over the years, adding tens of thousands of dollars to the price of a new home. The program offers municipalities the financial support needed to lower those charges while still funding critical infrastructure.

These reforms matter. They are important. But they are also temporary. That is the challenge.

If policymakers are serious about fixing affordability and increasing supply, these measures must become permanent.

Housing markets do not operate on short political cycles. Developers make investment decisions years in advance. Land is purchased some time before a shovel enters the ground. Financing is secured based on long-term assumptions.

Temporary incentives create temporary certainty. Permanent reforms create investment.

The reality is that Ontario remains nowhere near the housing production levels required to meet future demand.

You cannot attract people without places for them to live. Nor can you build a competitive economy without housing.

The federal government has introduced a new $1-billion investment tool designed to encourage economic development and business expansion. However, there is little point in attracting new factories, offices and industrial investment if workers cannot afford to live nearby.

Housing is as important as roads, transit systems, ports and energy networks. Without housing, economic growth eventually hits a wall. That is why RESCON is pushing for the next wave of reforms. HST relief and development charge reductions must become permanent initiatives.

But it cannot stop there.

The Ontario government has begun important conversations around building code modernization and regulatory reform. Those discussions must lead to action. Long-overdue changes such as allowing single staircases in mid-rise apartment buildings, increasing flexibility around floor plate sizes, and removing outdated angular plane restrictions should move forward.

These are not radical ideas. They are common-sense changes that would increase housing supply while maintaining safety standards.

Approval processes also require substantial modernization.

Builders continue to face lengthy delays, duplicative reviews and administrative requirements that add cost without improving outcomes. They are paying for services that are delivered slowly and inefficiently. Every month of delay increases financing costs and reduces project viability.

We should be striving to become one of the fastest and most efficient jurisdictions in building housing in the developed world. Instead, too often we remain among the slowest.

Federal housing policies also require a fresh look. The foreign buyer restrictions and mortgage stress test were introduced during a period of extraordinary market activity to cool demand. But the market today bears little resemblance to the overheated conditions of the pandemic years.

When new home sales remain weak and projects struggle to achieve viability, policy should focus on supporting construction rather than suppressing demand. At a minimum, Ottawa should allow the foreign buyer ban to expire as scheduled. Better yet, newly constructed housing should be exempt immediately.

These are sometimes uncomfortable conversations. But leaders must do what is necessary, not merely what is comfortable.

The good news is that the ball is rolling. Meaningful reforms have finally begun. Governments are listening. Solutions that once seemed politically impossible are now being discussed and implemented.

We now must finish the job. Housing policy needs to reflect current realities, not yesterday's conditions.

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.