Industry leaders warn stalled demand and frozen capital are choking future housing supply
Ontario’s housing establishment escalated its pressure campaign on both levels of government this week, warning that the province’s supply crisis has been compounded by collapsing demand, frozen capital and a loss of confidence across the market.
The joint statement from the Housing Advancement Coalition, led by the Toronto Regional Real Estate Board (TRREB), said “Ontario and Canada remain in the grip of a housing crisis that is increasingly defined not only by insufficient supply of the housing that is needed, but also by a decline in confidence across the housing ecosystem.”
It warned that “tens of thousands of approved housing units across Ontario and Canada remain unbuilt, putting future supply at risk.”
Sector calls for tax relief and financing tweaks
The coalition urged Ottawa to “expand the GST sales tax rebate on new homes to all buyers” and “modernize federal financing tools to support rental and missing middle ownership housing.”
It also called on the federal government to “restore practicality to mortgage qualification rules” and “amend the prohibition on foreign home buyers, with clear and enforceable guardrails.”
At Queen’s Park, the group pressed the province to “reform development charges and improve cost transparency,” “expand the HST sales tax rebate on new homes to all buyers,” “end exclusionary zoning in large municipalities” and “remove municipal barriers to housing delivery.”
“We must act now through bold measures; the time for incremental steps is behind us,” the sector leaders said, adding that they stand ready “to translate the recommendations found in our joint letter into real homes, real jobs, and lasting affordability for Canadians.”
Stress‑test debate and stalled construction
The push lands as regulators continue to wrestle with mortgage rules.
The Office of the Superintendent of Financial Institutions already removed the stress test for insured and uninsured straight switches, with superintendent Peter Routledge saying “it wasn't a big enough prudential risk to justify that appearance of unfairness.”
Industry voices have argued that broader changes to qualification rules could help unlock sidelined buyers without undermining stability.
Past reporting highlighted frozen resale market and a pullback in pre‑construction sales in Ontario risked deepening future shortages, even as prices corrected from pandemic peaks.
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