Urgent Call for Action: Addressing Ontario’s Housing Emergency and Restoring Affordability

The following is a joint statement released on October 27 by prominent members of Ontario’s diverse housing sector, including the Toronto Regional Real Estate Board (TRREB) and the Ontario Real Estate Association (OREA). This collaborative appeal underscores the critical need for immediate, decisive action to resolve the province’s escalating housing crisis.

Ontario is currently grappling with an unprecedented housing emergency, a systemic challenge that threatens the economic stability, social cohesion, and future prosperity of our entire province. Across communities, the alarming signs are undeniable: vital housing projects are facing severe delays, ambitious developers are reluctantly cancelling much-needed developments, and countless families, individuals, and essential workers are being systematically priced out of both homeownership and affordable rental markets. This dire situation demands not just attention, but immediate and decisive intervention from all levels of government.

As both the provincial and federal governments prepare to unveil their respective fall economic statements and budgets, our message from the unified housing sector is crystal clear and urgent: we need bold, coordinated action. Such action is not merely desirable; it is absolutely essential to significantly boost housing construction across all types and tenures, bring down exorbitant and escalating costs, and ultimately restore housing affordability within reach for all Ontario residents. The time for incremental adjustments is over; transformative policy changes, rooted in collaboration and foresight, are now imperative.

Housing transcends its fundamental role as mere shelter; it serves as the indispensable bedrock of our robust economy, a powerful and consistent engine for job creation, and the very heart of our vibrant communities. Today, Ontario’s extensive housing sector – encompassing a wide array of stakeholders from dedicated builders, knowledgeable real estate professionals (Realtors), influential business groups, essential trade associations, compassionate not-for-profit organizations, and crucial rental housing providers – speaks with a singular, unwavering voice. We firmly believe that by forging strong, genuine partnerships with governments at all levels, we can collectively move swiftly and effectively to unlock critical housing supply, drastically cut associated costs, and restore a sense of affordability by accelerating the delivery of both ownership and diverse rental housing options across the province.

We acknowledge and commend the constructive efforts undertaken thus far by federal, provincial, and municipal governments. These include a range of positive policy developments, essential zoning reforms aimed at increasing density, and various funding programs designed to incentivize and encourage greater housing construction. Notable provincial initiatives include the recently enacted Fighting Delays, Building Faster Act, 2025, which signals a clear governmental intent to take further practical steps. This act specifically aims to reduce bureaucratic red tape, lower construction costs, and restore much-needed confidence and investment in the rental housing market by expediting the often slow and cumbersome resolution processes for landlord and tenant disputes. Federally, programs such as the Housing Accelerator Fund and the Apartment Construction Loan Program have provided crucial financial support. Provincial contributions like the Building Ontario Fund and the Municipal Housing Infrastructure Program, alongside significant reforms to end exclusionary zoning and permit the as-of-right construction of multiplexes on single lots, and the Building Faster Fund, represent important strides forward. Despite these commendable projects and initiatives, it is undeniably clear that substantially more action, executed with greater speed and scale, is still critically needed to overcome the pervasive challenges of the current crisis and build a future where everyone has a place to call home.

Furthermore, we recognize that the housing ecosystem is also subject to potential disruptions stemming from factors largely outside the direct control of governments and the industry itself. Global challenges such as international trade conflicts, escalating geopolitical tensions, and pervasive economic uncertainty must be carefully considered in our strategic planning. These macro-level dynamics contribute to an unpredictable environment, influencing everything from the cost and availability of building materials and labor to overall investor confidence, thereby complicating efforts to stabilize and expand the housing market. A resilient and adaptable approach is essential to navigate these external pressures effectively.

The Economic Imperative: Why Housing Drives Prosperity in Ontario

Housing is far more than just a social concern; it remains the indispensable backbone of Canada’s economy, driving significant economic activity and job creation. This vital sector directly supports over 1.2 million jobs across the country, spanning a diverse range of professions from highly skilled trades and general construction workers to real estate agents, mortgage brokers, financial analysts, and countless service providers in related industries. Moreover, it contributes a staggering $143 billion in economic activity annually to Canada’s Gross Domestic Product (GDP), demonstrating its profound impact on national prosperity. However, the confluence of rapidly rising material and labor costs, increasingly difficult and protracted regulatory environments, persistent economic uncertainty, and severely constrained housing supply has led to a significant slowdown in new housing starts and a marked decrease in home purchases. This alarming trend is not only affecting aspiring homeowners and renters but is also putting tens of thousands of skilled trade jobs at significant risk. The cascading effects of this slowdown will inevitably impact spin-off economic activity in related sectors, from manufacturing to retail, and further push both home ownership and affordable rental housing out of reach for a growing number of residents, particularly in high-demand and economically critical areas like the Greater Toronto Hamilton Area (GTHA).

To effectively meet Ontario’s, and indeed Canada’s, pressing housing challenge, a truly united and focused approach to delivery is absolutely essential. This comprehensive strategy must involve a multi-pronged attack on the root causes of the crisis. By strategically reducing construction costs through innovative practices and streamlined processes, actively attracting both domestic and international investments through supportive policy, and meticulously aligning disparate tax policies, zoning regulations, and approval systems across all levels of government, we can collectively restore investor and consumer confidence, protect invaluable jobs, and foster an environment of innovation at the speed and scale that Canadians urgently require and deserve. This holistic approach is critical for building a sustainable and equitable housing future.

Policy Priorities for Immediate and Transformative Action

To decisively restore affordability, rebuild trust, and inject renewed confidence into the housing market, we urgently call upon municipal, provincial, and federal governments to engage in genuine collaborative partnership with the entire housing sector by adopting the following six fundamental measures:

1. 1. Position Housing as a Core Economic Driver and Central Policy Pillar

   For too long, housing policy has been viewed in isolation, often siloed from broader economic strategy. It is imperative that we fundamentally shift this perception, explicitly recognizing housing construction and its associated trades as an indispensable core driver of employment and a significant, direct contributor to GDP. Governments must adopt a comprehensive framework designed not only to acknowledge but actively preserve and expand the tremendous job creation potential that the housing industry inherently generates, from architects and engineers to plumbers, electricians, and landscapers. This commitment must extend to recognizing that widespread housing unaffordability is severely impeding our overall economic productivity, particularly within key economic hubs like the Greater Toronto Hamilton Area (GTHA). When housing is unaffordable, businesses struggle to attract and retain essential talent, commute times lengthen, leading to reduced productivity and quality of life, and disposable incomes diminish, all of which act as a persistent drag on economic growth and competitiveness. Elevating housing to a central tenet of economic policy will ensure that decisions are made with a holistic understanding of their far-reaching, positive impact on provincial prosperity.

2. 2. Modernize Outdated Tax Rules to Stimulate New Supply

   Current tax regulations, particularly concerning new housing construction, are often outdated and out of step with present-day market realities, inadvertently hindering supply. We advocate for a crucial modernization of these rules: specifically, extend the Goods and Services Tax/Harmonized Sales Tax (GST/HST) exemption to new homes valued up to $1.5 million for homebuyers. This updated threshold is vital as it more accurately reflects the prevailing market prices, especially in Canada’s major urban centers where the cost of a modest new home often exceeds previous exemption limits. Implementing this exemption would significantly reduce the upfront cost for purchasers, making new construction more financially accessible and attractive. Crucially, by alleviating a portion of the financial burden on buyers, this measure would directly incentivize new construction, encouraging developers to initiate and complete more projects, thereby increasing the much-needed housing supply. This targeted policy adjustment would not only provide direct, tangible relief to homebuyers but also act as a powerful catalyst for boosting housing starts and stimulating broader economic activity within the construction sector.

3. 3. Implement Fairer Fee Structures to Cut Costs for Homebuyers

   The current system of municipal and provincial fees applied to new housing developments is a significant, often overlooked, contributor to the soaring costs of homes and a major impediment to increasing supply. We call for a fundamental alignment of cost recovery mechanisms with actual service delivery and overarching housing goals. Municipalities and provinces must collaborate closely and transparently with the industry to thoroughly modernize the existing fee structure, which includes various development charges, permit fees, and other levies. Presently, these fees are often disproportionate to the actual services provided, effectively inflating housing costs and placing an undue burden on homebuyers, making housing less affordable. A modernized, transparent, and rationalized fee structure would significantly reduce barriers to construction, ensuring that charges are fair, predictable, and directly tied to the true cost of infrastructure and services genuinely required for new developments. This critical reform would directly translate into lower upfront costs for homebuyers and foster a more conducive and predictable environment for new supply to come to market more efficiently and rapidly.

4. 4. Embrace and Scale Innovation for Faster, More Efficient Building

   To truly build faster, more affordably, and more efficiently to meet Ontario’s acute housing needs, traditional construction methods must be proactively complemented and enhanced by embracing cutting-edge innovation. We strongly advocate for supporting the advent, widespread inclusion, and strategic expansion of modern construction methods. This encompasses a broad spectrum of advancements such as highly efficient panelized systems, precision-engineered modular building techniques, advanced robotics, 3D printing, and other emerging technologies that significantly boost productivity, substantially reduce construction costs, and dramatically shorten building times. These innovations enable homebuilding at an unprecedented scale and speed, addressing the urgent demand for housing with greater precision, reduced waste, and enhanced quality control. To fully realize their transformative potential, these methods must be supported by a robust innovation policy framework. This framework, developed in close partnership with the industry, should provide clear incentives for early adopters – both forward-thinking developers and discerning customers – of new solutions. Furthermore, it must include targeted investments in Canadian companies that are pioneering and providing these cutting-edge solutions, fostering a domestic innovation ecosystem. Scaling up these pioneering methods should be pursued aggressively, not as a replacement, but in addition to continuously supporting ongoing innovation and productivity enhancements within traditional construction techniques, ensuring a comprehensive approach to building a better housing future.

5. 5. Free Up Land and End Restrictive Exclusionary Zoning Practices

   Outdated and restrictive zoning regulations represent one of the most significant and entrenched barriers to increasing housing supply and achieving true affordability. It is time for decisive action to end exclusionary zoning, which often limits vast tracts of urban and suburban land exclusively to single-family detached homes, preventing diverse housing options. We advocate for progressive policies that permit “gentle density” and encourage a wider, more diverse mix of housing types across more communities. This includes strongly supporting the development of “missing-middle” housing – such as duplexes, triplexes, townhouses, and low-rise apartments – which effectively bridge the critical gap between single-family homes and high-rise condominiums. By allowing as-of-right construction for multi-unit dwellings in existing residential areas, particularly near transit and amenities, we can make more efficient and sustainable use of existing infrastructure, provide significantly greater housing choice to residents, reduce urban sprawl, and substantially improve affordability for a broader range of incomes. This fundamental zoning reform is crucial for creating more inclusive, sustainable, and vibrant communities that can accommodate a growing population and evolving housing needs.

6. 6. Incentivize Private Capital for both Ownership and Rental Housing Development

   To meet the sheer scale and urgency of Ontario’s housing needs, it is absolutely essential to unlock and strategically leverage the immense potential of private capital. We urge governments to encourage and implement programs that actively incentivize private investment, encompassing both financial and philanthropic capital, for the comprehensive development of both rental and ownership housing. This strategic approach will accelerate both market-rate and non-market construction, expanding housing options across the entire affordability spectrum. A key, highly effective measure we propose is the reintroduction of the Multiple Unit Residential Building (MURBS) tax incentive. MURBS, previously instrumental in significantly stimulating rental housing construction in Canada, offered tax deferral benefits to investors, thereby encouraging the development of much-needed purpose-built rental units. Reinstating such an incentive, alongside other targeted programs like low-interest loans, grants, risk-sharing mechanisms, and streamlined approval processes, would demonstrably attract critical investment, mitigate developer risk, and significantly boost the construction of high-quality rental supply, ultimately providing stable, accessible, and affordable homes for thousands of Ontarians in communities across the province.

The housing sector stands united, fully committed, and ready to partner proactively with every level of government – federal, provincial, and municipal. We firmly believe that through genuine collaboration, strategic innovation, and targeted investment, we can collectively reignite momentum, rebuild confidence across the entire market, and ultimately restore widespread affordability. Our combined and collective action will deliver the diverse, accessible, and affordable homes that our communities urgently need to thrive and prosper for generations to come.

Signed by Industry Leaders:

John DiMichele, CEO, Toronto Regional Real Estate Board (TRREB)

Luigi Favaro, CEO, Ontario Real Estate Association (OREA)

Ene Underwood, CEO, Habitat for Humanity GTA

Michael Brooks, CEO, Real Property Association of Canada

George Carras, CEO, R-LABS Canada

Jonathan Nusbaum, CEO, Terra Modular

Marlon Bray, Executive Vice President, Clark Construction Management

Tony Irwin, President and CEO, Federation of Rental-housing Providers of Ontario / Rental Housing Canada

Daryl Chong, President and CEO, Greater Toronto Apartment Association

Dave Wilkes, President and CEO, Building Industry and Land Development Association (BILD)

Kathy Hogeveen, Chief of Operations, Assembly Corp.

Jude Tersigni, Vice President of Planning and Development, Menkes Developments

Richard Lyall, President, Residential Construction Council of Ontario (RESCON)

Roselle Martino, Executive Vice President, Policy and Strategic Affairs, Toronto Region Board of Trade

Frank Cairo, Co-founder and CEO, Caivan Communities

Nhung Nguyen, CEO, Horizon Legacy