Ontario Construction News staff writer
The Greater Ottawa Home Builders’ Association (GOHBA) is sounding the alarm on the capital’s deepening housing crisis, warning that affordability has reached a “breaking point” for working families.
In a campaign outlining its priority policy actions, the association argues that a combination of soaring construction costs, economic pressure, and government-imposed fees is locking residents out of homeownership.
“Every day, we see how rising costs are putting home ownership out of reach and threatening the ability of working families to stay and grow here in Ottawa,” the association stated in its appeal to municipal and federal officials.
With the average home price in Ottawa climbing to $709,002 in October—a six per cent increase year-over-year according to recent market data—GOHBA is calling for immediate action on three fronts: lowering development charges, securing federal infrastructure support, and expanding the urban boundary.
The burden of government fees
At the heart of the industry’s concerns are development charges (DCs)—fees collected by the city from developers to pay for growth-related infrastructure like roads and sewers. GOHBA executive director Jason Burggraaf has long contended that these costs are ultimately passed on to homebuyers.
According to the GOHBA, development charges in Ottawa have increased by approximately 30 per cent in the last two years and have doubled over the past decade.
“Government-imposed taxes, fees, and charges like development charges, HST, and land-transfer tax add tens of thousands of dollars to the final price of a new home,” the association states.
The builders are calling on the City of Ottawa to fulfill its commitment to review the collection of these charges. The association argues that reducing DCs is the most direct way to lower the base price of new homes.
Infrastructure funding gap
The association also highlights a structural inequity in how infrastructure is funded in Ontario compared to other provinces. Currently, new homeowners in Ontario absorb the full cost of new municipal infrastructure through development charges.
GOHBA is urging the federal government to step in, noting that cities like Ottawa cannot shoulder these costs alone without passing them onto buyers.
“Federal investment in local infrastructure will help build new communities faster and help address the housing crisis,” the GOHBA plan states. While the City of Ottawa secured $176.3 million from the federal Housing Accelerator Fund in early 2024, builders argue sustained funding for core infrastructure—such as water and wastewater systems—is essential to unlock land for development.
The battle over the urban boundary
Perhaps the most contentious point in the GOHBA plan is the call to expand Ottawa’s urban boundary.
The association argues that the city lacks sufficient land for family-oriented homes with yards, asserting that while infill development is necessary, it cannot meet the demand for ground-oriented housing alone.
“Expanding the urban boundary would allow for new subdivisions with single-family and townhouse units, boosting supply and affordability for growing families,” GOHBA argues.
This position puts the industry at odds with recent decisions at City Hall. Earlier this month, city committees moved to refuse applications to expand the urban boundary for approximately 5,500 new homes in Kanata and Barrhaven. City planning staff have maintained that Ottawa already possesses a sufficient supply of land to meet provincial requirements for the next 25 years.
However, GOHBA warns that restricting land supply exacerbates price growth and limits choice for homebuyers.
Market context
The renewed push for affordability comes as the Ottawa market shows signs of tightening. The Canada Mortgage and Housing Corporation (CMHC) reported that housing starts trended downward in October 2025, while resale prices have continued to tick upward.
While the City of Ottawa is moving forward with its Housing Acceleration Plan and finalizing a new Zoning By-law expected to be approved in early 2026, the residential construction industry maintains that regulatory changes must be paired with cost relief to make a tangible difference.
“Solving Ottawa’s housing crisis requires shared responsibility,” GOHBA stated. “Residents expect homebuilders and all levels of the government to step up and take more action.”
For more information on the association’s affordability campaign, visit https://www.gohba.ca/housing-affordability.