Ontario’s residential builders are hoping that the upcoming federal budget includes specific measures to address housing supply and affordability. One is to help first-time buyers purchase newly built homes instead of being priced out of their preferred markets.
Topping a 2024 federal budget submission from the Residential Construction Council of Ontario (RESCON) are recommendations to include an immediate and full rebate of the Harmonized Sales Tax for first-time homebuyers and initiatives such as limited dividend programs and tax deferral policies from the 1960s, 1970s and 1980s that encouraged re-investment by builders.
“First-time homebuyers have been disproportionately affected by the housing situation,” says RESCON President Richard Lyall. “High interest rates and increased material and labour costs, along with exorbitant taxes, fees and levies have pushed up home prices and are preventing them from entering the housing market. Major policy changes are needed in the budget to help first-time buyers.”
The submission also recommends reforming the immigration system so there are more skilled trades workers available to build homes and condos. By 2023, 2,840 construction workers in the Greater Toronto Area are set to retire, according to data from BuildForce Canada.
“Most foreign trained construction workers, especially those within the voluntary trades, do not have certifications and moreover are not required be licensed or certified to work in the voluntary trades in Ontario,” the statement reads. “These workers have specialized skills sets which are required to build residential housing that Canadians need. This includes, but is not limited to tile setting, drywall installation, concrete and drain installation, high-rise concrete forming, basement forming and finishing carpentry trades.”
RESCON is also suggesting that the feds activate surplus crown and crown agency land for residential housing and support the ability of municipalities to build the infrastructure necessary to encourage more housing construction.
“These are desperate times as sales of new homes have literally ground to a halt, yet our population continues to increase,” added Lyall. “The practical measures we are suggesting would help boost housing supply and contribute to ensuring affordability issues are addressed.”
