Ontario Construction News staff writer
Despite a series of housing reforms introduced over the past year, new home construction continues to fall short of demand, according to the Residential Construction Council of Ontario (RESCON).
The industry group will examine the state of Ontario’s housing market during Housing Summit 6.0, Housing Reform: Is It Working?, a free online event scheduled for Sept. 23 from noon to 5 p.m.
The summit will bring together industry leaders, policymakers, market analysts, real estate professionals, planners and pollsters to examine housing supply, construction costs, affordability and the effectiveness of recent reforms.
Speakers will also look at the potential impact of tariffs on construction costs and identify measures that could help Ontario meet its housing supply targets.
Speakers include Build Canada Homes CEO Ana Bailão, Toronto Regional Real Estate Board chief market analyst Jason Mercer and Federation of Rental-housing Providers of Ontario president and CEO Tony Irwin.
“The housing crisis is one of the greatest economic and social challenges facing our nation and must be resolved,” said RESCON president Richard Lyall. “Recent government measures have provided some much-needed help, but modest progress is not the same as success. Housing construction continues to fall far short of what is needed to restore affordability and meet future demand.”
Lyall said housing policy, taxation and the approvals system need to reflect current market conditions.
“The reality is that we remain far from solving the housing crisis,” he said. “Our housing policy, taxation and approvals system needs to reflect current realities, not yesterday’s conditions.”
RESCON said taxes account for about 36 per cent of the cost of a new home, while municipal charges in the Greater Toronto Area can add more than $100,000 to the cost of a new home.
The organization also pointed to lengthy and unpredictable approvals as another barrier to construction. Approvals in the GTA can take more than 18 months, according to RESCON, adding carrying costs and uncertainty before construction begins.
The group said Ontario is also falling behind its target of building 1.5 million new homes by 2031.
About 1.24 million additional homes would have to be built to reach the target, RESCON said. With starts and completions totalling about 260,000 units since 2022, the province would need more than 218,000 starts annually for the remainder of the period to reach the goal.
RESCON also cited Canada Mortgage and Housing Corp. data indicating Toronto would need to increase annual housing starts by at least 50 per cent over the next decade to restore affordability to pre-pandemic levels.
“These numbers are an eye-opener and should spur policymakers and governments at all levels to align their policies to support Ontario’s homebuilding industry, particularly by lowering the tax burden, reducing red tape and speeding up the cumbersome approvals process,” Lyall said.
He called for temporary measures such as HST rebates and development charge reductions to be made permanent.
“While some steps have been taken, the seriousness of the crisis requires quick and decisive action to make temporary HST rebates and development charge reductions permanent,” Lyall said. “The potential economic consequences of doing nothing could be devastating.”
The public and media can attend the online summit free of charge. Registration and the full agenda are available through RESCON.
The event is sponsored by the Federation of Rental-housing Providers of Ontario, Toronto Regional Real Estate Board, Enbridge and LiUNA Local 183.
