New Legislation Aims to Accelerate Homebuilding in Ontario

The Ontario provincial government has recently introduced groundbreaking legislation designed to address the pressing housing supply and affordability crisis currently gripping the province. Dubbed the Protect Ontario by Building Faster and Smarter Act, 2025, this legislation represents a significant shift in the approach to residential construction, taking into account many of the proposals that builders across Ontario have been advocating for over the past few years.

Streamlining the Approval Process

One of the most critical aspects of the new legislation is its plan to cut red tape and expedite the approval processes required for new home construction. The extensive bureaucratic hurdles that have long plagued the residential construction industry can serve as substantial barriers to timely and affordable homebuilding. By simplifying and standardizing development charges (DCs) levied by municipalities, the legislation aims to alleviate some of the financial burdens that developers face—burdens that are ultimately passed down to consumers.

As part of the reform, developers will now be allowed to remit DC payments at the point of occupancy, rather than during the earlier phases of the planning and approvals process. This change means that developers won’t be out of pocket for these charges, easing the financial pressure that often stalls projects.

Transparency and Limiting Municipal Requests

In a further effort to streamline processes, the new legislation brings much-needed transparency to development applications. It places caps on how many studies a municipality can request from a homebuilder. These changes are expected to significantly reduce delays and speed up the overall timeline from planning to construction, thus accelerating the delivery of new homes to the market.

Moreover, the legislation empowers the Minister of Infrastructure to issue Minister’s Zoning Orders (MZOs), allowing for exemptions from local zoning and planning regulations for transit-oriented communities. This practical step is crucial for preventing projects from being held up by local regulations that sometimes hinder overall development goals.

Increased Funding for Housing Initiatives

Another promising component of the Protect Ontario by Building Faster and Smarter Act is the proposed immediate allocation of $400 million to the Housing-Enabling Water Systems Fund and the Municipal Housing Infrastructure Fund. Over the next four years, this commitment will amount to nearly $2.3 billion across both funds. This financial support is essential to bolstering infrastructure and ensuring the sustainability of new developments.

A Unified Building Code

To enhance consistency across the province, the legislation aims to establish the Ontario Building Code as the uniform standard for construction. This move seeks to eliminate the unpredictability created by municipalities introducing unexpected charges or changes during the building process. Such predictability is vital for builders to plan effectively and keep costs manageable.

Addressing the Housing Affordability Crisis

Ontario is currently grappling with a severe housing affordability crisis. To meet its ambitious goal of constructing 1.5 million homes by 2031, the province must tackle the glacial pace of planning approvals and the burdensome tax regime, which, according to a report by the Canadian Centre for Economic Analysis, now constitutes an average of 36% of the purchase price of a new home—up from 31% just three years ago. Rising development charges have significantly contributed to this increase, exacerbating the challenges faced by first-time buyers and young families.

With a concerning trend of population loss—8,094 young adults left Ontario in 2024 while Alberta welcomed 18,413—proper housing solutions are imperative. Current statistics further paint a grim picture; housing starts in Ontario for communities with populations of over 10,000 have decreased by 46% year-over-year, and Toronto’s housing starts fell by an alarming 65%.

The Path Forward

The situation in Ontario’s housing market is dire, placing immense pressure on the residential construction sector. With so many challenges, from high taxes to bureaucratic roadblocks, the newly introduced reforms are both timely and essential. By embracing bold actions, stakeholders hope to stimulate the housing market and alleviate the affordability crisis.

This legislative reform represents a step in the right direction, aligning with the urgent need for collaborative efforts in tackling one of the most significant challenges facing Ontario today. Ensuring that the goals set for future housing construction are met requires a unified approach—not only from the government but also from builders, municipalities, and communities alike.

Conclusion

As the president of the Residential Construction Council of Ontario, I am optimistic that the Protect Ontario by Building Faster and Smarter Act, 2025 will catalyze meaningful change within the homebuilding sector. By fostering an environment conducive to building and reducing the various obstacles that have hindered the industry for far too long, we can hope to see a brighter future for housing in Ontario.

For more information or to discuss further, please feel free to reach out to me at media@rescon.com.