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Vaughan, Ont., Feb. 04, 2026 (GLOBE NEWSWIRE) — The Residential Construction Council of Ontario (RESCON) is urging the provincial government to take a series of bold steps in its upcoming budget to address the most severe housing crisis the province has ever faced.
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In a pre-budget submission, the association outlines 10 fixes, including expanding Ontario’s HST rebate to all new home purchasers, rolling back municipal development charges and changing the system, digitizing the approvals process, and supporting off-site construction methods.
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“The numbers speak for themselves and they are alarming,” said RESCON president Richard Lyall. “Housing starts have evaporated precisely when Ontario needs new homes the most. This is not a market correction – it is a systemic failure that demands immediate government leadership. The Ontario budget is an opportunity for the province to make real inroads.”
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RESCON’s submission comes at a time when the new homebuilding sector is contending with a perfect storm of challenges that have brought residential construction to a near standstill.
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The housing cost-to-income ratio in Ontario now exceeds 9:1, placing home ownership increasingly out of reach for many families. In the Greater Toronto Hamilton Area, figures show that single-family home sales are down 71 per cent and condo sales have plunged 90 per cent.
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Tens of thousands of jobs have already been lost across the province, with further losses expected in the months ahead. Reports suggest Ontario could face a GDP reduction of 1.5 to 2.5 per cent between 2026 and 2027 directly linked to the collapse in residential construction.
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Budget 2026 provides a unique opportunity to reverse course. Housing affordability challenges have been decades in the making, but the Ontario government is uniquely positioned to lead, given its jurisdiction over taxes, housing policy, infrastructure funding and municipal governance.
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“Housing should not be taxed like alcohol or tobacco as it is a basic economic necessity,” said Lyall. “If we want a prosperous, competitive Ontario, we must restore the conditions that allow builders to build and consumers to buy or rent homes at attainable prices. The present situation is unsustainable and, if further action is not taken, will only lead to more pain for Ontarians.”
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The pre-budget submission recommends that:
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- Ontario’s HST rebate be expanded to all new home purchasers for homes up to $1.3 million.
- Municipal development charges be rolled back to 2015 levels for three years.
- A new provincial infrastructure funding model be created to reduce reliance on development charges.
- Municipal and provincial land transfer taxes be suspended on new and never-occupied homes for three years.
- Planning and approvals processes across Ontario be digitized and standardized designs and as-of-right modalities be applied.
- Offsite and innovative construction methods be supported.
- Measures to advance PropTech and ConTech adoption be implemented.
- Foreign buyer bans for new housing, particularly high-rise projects, be removed.
- Public-private partnerships be expanded to accelerate housing delivery.
- Housing programs, such as MURB and Limited Dividend Company models, be reactivated.
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