Urgent Call to Action: Coalition Seeks Government Partnership to Revive Ontario’s Housing Sector

A coalition of 16 influential housing sector organizations is urgently calling on governments at the municipal, provincial, and federal levels to collaborate effectively, with the aim of revitalizing Ontario’s struggling residential construction sector. The coalition’s core message emphasizes the need for immediate initiatives to reduce construction costs, lower taxes on new homes, embrace innovative building methods, and expedite approval processes. Their ultimate goal? To address the growing housing crisis and ensure more homes are accessible to Ontarians.

The Housing Emergency in Ontario

The coalition’s latest statement paints a stark portrait of the current housing landscape. With construction projects stalling and builders cancelling developments, many families and individuals are being priced out of the market entirely. The urgency of the situation cannot be underestimated, as highlighted by the coalition: “Ontario is facing a housing emergency.” As the provincial and federal governments prepare for their Fall Economic Statement and 2025 Budget, the coalition insists that bold, coordinated action is vital to alleviate affordability issues and boost housing supply.

Diverse Representation in the Coalition

This diverse group includes various stakeholders from the housing sector, such as builders, realtors, and rental providers, showing a united front on the pressing issue of housing. Notable organizations within the coalition include the Toronto Regional Real Estate Board, the Federation of Rental-housing Providers of Ontario, and the Building Industry and Land Development Association, among others. By assembling a wide range of perspectives, the coalition is better positioned to advocate for effective policy changes.

Policy Updates and Recent Initiatives

While the coalition acknowledges recent efforts by all levels of government to foster housing development—such as the Fighting Delays, Building Faster Act, 2025, and the Housing Accelerator Fund—they argue that more extensive measures are required. They recognize the valuable contribution of recent initiatives like the Municipal Housing Infrastructure Program and the Building Faster Fund in encouraging new housing but believe a more robust approach is necessary to combat rising costs and slow new housing begins.

Economic Impact and Job Preservation

Beyond the immediate implications for homeowners, the coalition points out that the residential construction sector significantly impacts the broader economy. Supporting over 1.2 million jobs and contributing over $143 billion to Canada’s GDP annually, housing is not merely a social issue; it’s an economic cornerstone. Rising costs, restrictive regulatory environments, and economic uncertainties threaten to exacerbate the crisis and endanger countless skilled trade jobs.

The statement calls attention to the importance of a responsive and supportive regulatory framework that can protect job sources and stimulate economic activity. “By reducing construction costs, attracting investments, and aligning tax policy, zoning, and approval systems, governments at all levels can restore confidence and protect jobs,” it argues.

Modernization of Tax Rules and Fee Structures

One of the coalition’s principal requests is for a modernization of outdated tax rules that currently serve as barriers to prospective homebuyers and builders. They advocate for a GST/HST exemption on new homes valued up to $1.5 million, adjusting this limit to reflect current market realities—especially critical in major urban centers.

In addition, the coalition urges governments to reinvestigate the fee structures associated with new housing, as these fees contribute to inflating costs and constraining supply. An overhaul of the fee system could not only alleviate pressures for homebuyers but also make new construction more appealing for builders.

Embracing Innovative Construction Methods

The coalition highlights the necessity for governments to support modern construction methods such as panelized systems, modular building, and robotics. They argue that an innovation policy framework should be established, encouraging early adopters and investments in Canadian companies that leverage new technologies. Such initiatives could significantly expedite housing delivery and enhance overall efficiency within the sector.

Zoning Modernization and Housing Variety

Another critical component of the coalition’s request involves reforming outdated zoning laws. They argue for an end to restrictive zoning practices that inhibit the development of diverse housing types, particularly ‘missing middle’ housing and multi-unit dwellings. This approach would not only increase the supply of homes but also foster inclusivity in communities across Ontario.

Partnership for Future Success

The coalition is eager to foster a collaborative relationship with all levels of government, emphasizing that through partnership, innovation, and investment, they can collectively create solutions that address the urgent housing crisis. Their joint statement underscores that “housing is more than just shelter; it’s the foundation of our economy and the heart of our communities.”

Conclusion: A Call for Timely Action

As Ontario continues to navigate its housing crisis, the coalition’s call for coordinated action is critical. Recognizing housing construction as a core driver of economic growth can lead to transformative changes that benefit not only the housing market but the broader community as well. With a united front and pragmatic solutions, there’s hope that affordable housing can become a reality for all Ontarians.

The coalition’s efforts remind us that addressing housing supply and affordability is not merely a challenge; it offers a unique opportunity to enhance the foundation of our communities, creating spaces where families can flourish and thrive.