Ontario Construction News staff writer
The Residential Construction Council of Ontario (RESCON) is eager to collaborate with Premier Doug Ford and the newly elected Progressive Conservative government to honor campaign commitments, particularly reducing the tax burden on new housing and implementing reforms to accelerate the permitting and approvals process.
“Skyrocketing taxes, excessive development charges, and slow approval processes are crippling Ontario’s residential construction industry, significantly increasing the cost of building homes,” said RESCON president Richard Lyall. “We are ready to work with the Ford government to remove barriers to homebuilding and create conditions that will increase construction activity. The challenge is substantial, but we must meet it.”
Ford spoke at RESCON’s annual general meeting Jan. 23. He thanked Lyall for leading the charge on housing and recognized association staff and board members for the work they do in building communities.
Ford told the crowd that “governments must start cutting more red tape, regulations and fees.”
The Progressive Conservatives have vowed to cut red tape, implement reforms to expedite permitting and approvals, and collaborate with municipalities like Vaughan, London, and Mississauga to introduce a more rational and sustainable approach to development charges.
In Toronto, where projects are expected to be approved in 90 days, the process currently takes at least 600 days. In several municipalities, approval timelines stretch into years, inflating project financing costs that ultimately impact consumers.
Taxes, fees, and levies account for 36 percent of the cost of a new home, with development charges playing a significant role. Toronto has increased development charges on single and semi-detached homes by 464 percent from 2014 to 2024, while incomes in Ontario have risen only 29 percent during the same period.
RESCON is also calling for the removal of development charges on homes with at least three bedrooms to encourage the construction of family-friendly housing. Additionally, RESCON is urging the government to remove or rebate the eight percent provincial portion of the HST on new home purchases, up to a maximum of $80,000, and is encouraging the federal government to implement a similar measure for the five percent federal portion.
“Ontario needs conditions that enable builders to construct affordable homes, but the current system of excessive taxes and outdated regulations only drives up costs and hinders residential construction,” Lyall said. “At this critical time, we need a government that is dedicated to the housing industry and willing to take action.
“It is essential that the government works with builders and developers to address these challenges and revitalize the residential construction sector.”
The ongoing tariff conflict with the U.S. further underscores the urgent need for provincial action to improve housing affordability and supply.
