Builders say Ontario government legislation will spur new home building

Vaughan, Ont., May 12, 2025 (GLOBE NEWSWIRE) -- The Residential Construction Council of Ontario (RESCON) commends the Ford government for introducing legislation that will cut red tape, streamline approvals and tackle other issues that add to the cost of a new home, as it will spur more building.

“In light of the dire housing supply and affordability crisis that we are facing, the proposed legislative changes are critical to eliminating hurdles and reducing costs so that the residential construction industry can get back on track and build the housing that Ontario needs,” says RESCON president Richard Lyall. “Today’s announcement aligns with many of the priorities identified by RESCON over the past two years to support residential housing construction and new home building. The actions undertaken by the government are vital to this effort.”

Specifically, RESCON is pleased that the legislation aims to standardize development charges (DCs) levied by municipalities to pay for infrastructure that supports new developments. For years, RESCON has been calling on municipalities to work to reduce the impact of these charges, as they raise the price tag of a home and are ultimately paid by consumers. The bill would also allow developers to remit DC payments at the point of occupancy instead of much earlier in the planning approvals process.

The legislation would also give the provincial government a direct say in the development approvals process and place limits on how many studies a municipality could request from a home builder. Meanwhile, the bill would allow the minister of infrastructure to issue MZOs and exempt transit-oriented communities from zoning and planning rules governed by local towns and cities.

The provincial government also announced other significant changes such as increasing its investment in housing-enabling infrastructure by adding $400 million in immediate funding to the Housing-Enabling Water Systems Fund and the Municipal Housing Infrastructure Fund.

Ontario is struggling to meet its goal of building 1.5 million homes by 2031. The glacial planning approvals process and exorbitant tax burdens are major causes. A report done by the Canadian Centre for Economic Analysis revealed that the tax and fee burden in Ontario averages almost 36 per cent of the purchase price of a new home – up from 31 per cent three years earlier. Hikes in development charges accounted for a big chunk of that increase.

Young adults are leaving Ontario because they can’t find affordable homes. According to latest statistics, 8,094 young people left Ontario in 2024 while Alberta gained 18,413. Ontario, which used to lead net gains for workers, has held the title of biggest loser for four consecutive years.  

“At a time when there are so many challenges facing the residential construction industry, these changes are necessary and essential as they will simplify the approvals process and make the homebuilding process more efficient,” says Lyall. “The housing affordability and supply crisis is the most intense challenge facing the homebuilding sector in decades and nothing short of significant and collaborative effort can assist in turning this situation around. Today’s announcement was a major step towards implementing the required solutions.”

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

CONTACT: Grant  Cameron International 
RESCON
905-638-1706
cameron@rescon.com