BUILDING DURHAM

We want to thank all our members who have stepped up and have joined our grass roots campaign that began in December 2025 to increase awareness for our provincial MPPs and federal MPs on the need to reduce the crippling levels of taxation on new homes in the province. The data used in that campaign came from modelling work done in the summer and fall of 2025 using the best available data at that time, and told a compelling story of what would happen to housing affordability if the province failed to act now. 

To improve our chances of delivering the desired outcome on this file, we doubled down on the strength of the evidence to support our case even further. In December, OHBA, in collaboration with BILD through our integrated policy and research resources, commissioned Altus Group to do an even deeper dive into the state of Ontario’s home construction industry and housing affordability for all of 2025. And from this analysis, we asked the study’s author, Peter Norman, the Chief Economist at Altus Group, to project the current industry trends through to 2030 to better define the state of housing affordability over the next five years. The results showed an even more distressed state of the market, a further erosion of government revenues, and no improvements in housing supply or overall affordability. 

Summary of the findings 

• Ontario continues to have the worst housing market in Canada, with steep declines in new home sales over the last five years, and significantly lower housing starts and completions. This confirms that the cause is a systemic breakdown in housing supply due to compounding poor policy decisions of the past, and not a cyclical slowdown. 
   

• In 2025, the Ontario government saw $2.4 billion less in PST on new home sales due to the total number of new home sales during the year drop to just 14,000, far below the five-year average of 50,000 sales annually. 
   

• Combined with the drop in Land Transfer Tax (LTT) revenues, and lower income tax revenues due to job losses, the Ontario government saw their revenues from the home construction industry drop by $4.4 billion in 2025, and similar losses are projected for the next several years. 
   

• In June of 2025, OHBA, using the earlier Altus Group research, highlighted that 40,000 industry jobs were at risk over the next 2-3 years. CHBA’s recent Housing Market Index (HMI) report confirmed that almost 20,000 jobs were lost in 2025. 
   

• If the current industry contractions continue, over the next five years the new home construction and renovation industry could see 100,000 jobs lost (50,000 direct, and 50,000 indirect sector jobs). 

Armed this new data, representatives of OHBA and BILD, along with MMAH Minister Rob Flack, presented the results of this latest analysis report to Finance Minister Peter Bethlenfalvy to further substantiate OHBA’s call for the Ontario government to remove the GST from all new home sales and substantial renovations in the province. Our evidence was sound. Our message was clear. 

Since that time, OHBA, along with BILD and our other local HBAs, have continued to lobby government decision makers on the need to take immediate action to reverse the current downward trend in housing affordability and supply.  

OHBA will continue to assert our position with government that the only way forward to restoring new home affordability for Ontario families is to remove the PST, and to encourage the federal government to follow Ontario’s lead and remove the federal GST from the price of a new home. Combined, on an average $1 million home in Ontario, the combined PST/GST removal would reduce the cost of the home by an average of almost $100,000. This is the only way to bring immediate relief to Ontario’s crippled new home housing market. 

We will continue to update you on our progress on this file. And we encourage you to keep meeting with MPPs and MPs so they understand the urgent need for immediate government action to reduce the cost of new homes and restore much needed housing supply in Ontario. 

OHBA invites you to review the report summary and key messages below to appreciate why our current efforts are so important to our industry, and to Ontario families. 

Thank you again for your continued support on this critical policy initiative. 

Key Documents For OHBA Members
One-page summary of the December 2025 Altus Group Report
Member Key Messages Calling On Government Action Now
 
For further information, please contact:
Scott Andison
Chief Executive Officer
sandison@ohba.ca / 416-525-8071

As part of OHBA’s Member’s Edge program, we are pleased to announce that all DRHBA members are eligible to join Perkopolis! Perkopolis is a free, member’s only discount program, with over 5,000 perks available, ranging from discounts on travel, entertainment, shopping, gift cards and more.

To take advantage of this benefit, email membership@ohba.ca today to register.

The Town of Whitby’s annual development charge indexing for 2026 will come into effect February 1, 2026. There is a 4.2 % increase to development charges rates. Please see the attached notice for the new rates.

Notice of 2026-Feb-01 DC Indexing - General.pdf

The Ontario Home Builders’ Association has announced an important update regarding the implementation of the 10-day cooling-off period for buyers of new freehold homes. Originally scheduled to take effect on January 1, 2026, the start date has now been deferred to January 1, 2027 following a review of current market conditions by the Ministry of Public and Business Service Delivery and Procurement.

This policy, introduced in August 2024, was designed to give purchasers additional time to review their purchase agreements and make informed decisions. Under the new timeline, starting January 1, 2027, buyers who sign a purchase agreement for a new freehold home will have 10 days to reconsider their purchase. If they choose to cancel during this period, their deposit will be returned in full, without penalty.

This is an important step in the right direction on a policy that OHBA has been actively lobbying the government to reconsider since its introduction in August 2024. OHBA has consistently raised concerns about the impact of a mandatory cooling-off period on builder agreements, project timelines, and market stability, particularly in today’s challenging economic environment.

 The government’s decision to delay implementation is seen as a positive step toward balancing consumer protection with practical considerations for builders.

The Ministry has committed to providing stakeholders with updates on any additional regulations well in advance of the new implementation date. OHBA will continue working closely with the government to ensure that future regulations respect consumer confidence while maintaining a fair and workable process for builders.

For more details, you can review OHBA’s earlier submission on this policy here. 

The Town of Whitby is offering limited-time financial incentives to developers through the newly approved Version 2 of the Whitby Green Standard.

The Town of Whitby is hosting a webinar on Thursday, January 15, 2026 from 11 a.m. to 12 p.m. Attendees will learn how to apply for the new Whitby Green Standard Incentive Program. The webinar will introduce Version 2 of the Whitby Green Standard, which has been streamlined to focus on the elements that deliver the greatest environmental impact.

This session will walk you through the reduced and restructured criteria, explain the incentives available, and outline the step-by-step application process – giving you a clear understanding of what’s new and how to take advantage of the updated program.

Register here.

OHBA is launching an advocacy campaign calling on the provincial government to remove the PST from all new-built home sales, and on the federal government to remove the GST from all new-built home sales.

We know that both the federal GST and the provincial PST must be removed from ALL new home sales to meaningfully improve affordability, stimulate construction, and protect Ontario’s workforce and economy. We also know that our members are our greatest asset, and you sharing what you are experiencing will be critical in moving the lever on this file. 

Products to support our province-wide advocacy campaign can be found here. 

If you have any questions or require any additional support, please don’t hesitate to reach out to John Cruickshank, Manager, Engagement & Advocacy, at jcruickshank@ohba.ca

Ontario’s housing market is facing unprecedented pressures: tens of thousands of completed homes remain unsold, 40,000 industry jobs are at risk, and ownership rates are declining faster than anywhere else in Canada.

As part of OHBA’s coordinated advocacy, we are advancing a clear position: Both the federal GST and the provincial PST must be removed from ALL new home sales to meaningfully improve affordability, stimulate construction, and protect Ontario’s workforce and economy.

Join OHBA CEO Scott Andison and Chair Christina Giannone for a members-only briefing on OHBA’s coordinated tax-relief efforts

This session will walk through the evidence behind the removal of GST/PST, outline OHBA’s provincial-federal advocacy strategy, and discuss potential next steps to better engage the broader membership in these coordinated efforts.

Thursday, December 11, 2025
8:00 AM - 9:00 AM
Member-Only Webinar - Registration Required

What Members Will Learn:

• The current state of Ontario’s market: completions, sales, job losses
• Why removing both GST and the provincial PST/HST portion is the fastest way to make homes affordable
• OHBA’s advocacy strategy with the federal & provincial governments
• Receive your advice on next steps to ensure our message is heard in the broadest possible manner

Speakers:

• Christina Giannone, Chair, OHBA; Vice President, Planning & Development, FRAM Goup
• Scott Andison, CEO, OHBA

Don't Miss Out - Register Today

The federal government’s initiative, Build Canada Homes, is now open for proposals.  Build Canada Homes is a new federal agency that will build affordable housing at scale.  It will leverage public lands, offer flexible financial incentives, attract private capital, facilitate large portfolio projects, and support modern manufacturers to build the homes that Canadians need.

Build Canada Homes is now ready to partner with organization committed to increasing the supply of affordable housing across Canada.

The program will prioritize proposals that include the following features:

• Ready to build – construction ready to build within 12 months
• Affordability – depth and duration of affordability that meets local needs, supports community stability and creates capacity in non-profit housing
• Innovation & Speed – modern construction methods like modular and factory-built housing to cut costs and speed up delivery
• Strong partnership – collaborative projects that successfully leverage capital and bundle submissions for regional impact
• Made in Canada – Canadian materials to strengthen supply chains and support local manufacturing.

The Build Canada Homes program wants to work with non-profit and community housing providers, private developers, municipal governments, financial institutions and more.  Eligible projects include:

• New builds, infill, and redevelopment
• Mixed-income and mixed-use developments
• Student rentals, seniors’ independent living
• Large-scale or bundles proposals
• Modern construction methods

Learn more here.

The Minister of Municipal Affairs and Housing (MMAH), the Honourable Rob Flack, has sent a letter to OHBA regarding interest charges on frozen and deferred development charges (DCs).  It is OHBA’s understanding that this letter has been sent directly to AMO, who has been directed to distribute it to heads of council of all DC-levying municipalities.

The following is a summary of key points from the Minister’s letter:

• Under existing provisions in the Development Charges Act, 1997, DCs continue to be frozen as of the date a site plan or zoning application is made.
• Municipalities retain authority to charge interest on frozen DCs up until building permit issuance, as these provisions were not amended by Bill 17.
• Bill 17 introduced a new requirement that DCs for non-rental residential developments be deferred to occupancy, at which point they are paid in full.
• Importantly, Bill 17 removed municipal authority to charge interest on all legislatively deferred DCs going forward.
• Any interest accrued on a deferred DC prior to November 3, 2025 remains payable.
• After November 3, 2025, municipalities may not charge any additional interest on deferred DCs.
• Developers continue to have the option to pay DCs earlier, at their own discretion, and no section 27 agreement is required to facilitate early payment.

These clarifications will be helpful in ensuring clarity and consistent interpretation across municipalities in supporting the implementation of the recent DC reforms coming out of Bill 17.

For reference, the Minster's Letter can be found here.

The Province has released a consultation proposing the consolidation of Ontario’s 36 conservation authorities into seven regional conservation authorities. This restructuring may affect watershed management, permitting processes, development timelines, and how conservation authority decisions are made across different parts of Ontario.

The Ministry is specifically looking for feedback on:
• Whether the proposed regional boundaries make sense
• Whether the criteria used to define those boundaries are appropriate
• How consolidation could affect permitting, local responsiveness, and development processes
• How impacts may vary across different geographic areas

Given the variation in local conditions and our industry’s diverse experiences with conservation authorities, your feedback is important to ensure OHBA can provide a clear, representative submission.

Please send your comments or experiences to Kirstin Jensen at OHBA (kjensen@ohba.ca) by December 17th so they may be included. ERO posting: https://ero.ontario.ca/notice/025-1257