Actions taken by Ontario and federal governments are a step forward for homebuilding

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Vaughan, Ont., March 30, 2026 (GLOBE NEWSWIRE) — The Residential Construction Council of Ontario (RESCON) is pleased that the federal and Ontario governments have joined forces and announced a landmark deal to support the reduction of development charges (DCs) and that the province has also tabled legislation to cut bureaucratic red tape which will enable projects to be built quicker.

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“RESCON commends Prime Minister Mark Carney and Premier Doug Ford for working together on these vital initiatives as they will boost the residential construction sector and make new homes more affordable,” says RESCON president Richard Lyall. “Combined with the measures the two governments announced last week to remove the HST on newly built homes, it will help to substantially bring down the tax burden for consumers and lift the industry at a critical time.”

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DCs levied by municipalities can push up the expense of building a home by up to $200,000. They are particularly onerous for those entering the market for the first time. 

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A report prepared earlier for RESCON revealed that the tax burden now accounts for 36 per cent of the purchase price of a new home. That means on a $1-million new home, $360,000 is taxes, fees and levies. DCs are a big part of that amount.

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RESCON has advocated for Ontario and the feds to work on lowering the charges, as they have evolved from a relatively modest cost into one of the largest components in the price of a new home. In many parts of the GTA, DCs alone now add well over $150,000 to the cost of a typical family home. In a 25-year span, DCs in Toronto have risen by more than 5,000 per cent – far outpacing inflation, which increased by just over 70 per cent during the same period.

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DCs are a regressive tax. They are levied upfront and embedded in the purchase price of a new home, meaning they disproportionately affect first-time buyers and young families.

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“Development charges have been on a trajectory that is unsustainable and economically counterproductive. They significantly hike the price of a new home,” says Lyall. “The implications are profound. Middle-income families are increasingly priced out of home ownership. The measures taken today by the province and the feds will help move the needle.”

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Meanwhile, new legislation called the Building Homes and Improving Transportation Infrastructure Act introduced today in the Legislature will reduce barriers to homebuilding, streamline approvals, and make it easier and quicker to receive such things as site plan approvals.

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As Housing Minister Rob Flack noted, delays add to the cost of housing. Simplifying planning and approval tools will help get the shovels for much-needed housing in the ground quicker and eliminate expenses which, in the end, will enable builders to build homes that people can afford.

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“Homebuilding has stalled and the outlook for the industry is grim,” says Lyall. “The measures announced today by the two governments are a positive development for buyers and the industry. Addressing the housing crisis requires all levels of government to work toward the common goal of making new homes more affordable and speeding up construction.”

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RESCON is the province’s leading association of residential builders committed to providing leadership and fostering innovation in the industry.

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