RESCON Urges Ontario to Overhaul Housing Policy Amid Construction Collapse
Event summary
- RESCON submitted a pre-budget proposal to Ontario on February 4, 2026, outlining 10 measures to address the housing crisis.
- Housing starts in Ontario have plummeted amid a 9:1 cost-to-income ratio, with single-family home sales down 71% and condo sales down 90% in the Greater Toronto Hamilton Area.
- The sector faces potential GDP reduction of 1.5% to 2.5% between 2026 and 2027 due to the construction slowdown.
- Key proposals include expanding HST rebates, rolling back municipal development charges, and digitizing approvals.
The big picture
Ontario's housing crisis has reached a critical juncture, with systemic failures in policy and approvals processes exacerbating affordability challenges. RESCON's proposals target key bottlenecks, including tax incentives, municipal charges, and digital transformation of approvals. The province's response will determine whether it can catch up with global housing delivery leaders.
What we're watching
- Regulatory Response
- Whether Ontario will adopt RESCON's proposals in Budget 2026 to accelerate housing delivery.
- Market Recovery
- The pace at which housing starts rebound if policy changes are implemented.
- Economic Impact
- How the proposed measures affect Ontario's GDP and employment in the construction sector.