GTA Strategies | Building Momentum: Key Wins, Hurdles & New Support for Canada’s Construction Sector

04 Aug Building Momentum: Key Wins, Hurdles & New Support for Canada’s Construction Sector

Posted at 20:40h in Press Releases by admin 0 Comments

Concise summary of the most important developments, challenges, and opportunities shaping Canada’s construction sector this week.

Rising mortgage rates are offsetting the benefits of falling home prices, keeping affordability out of reach for many Canadians. Despite a 20% drop in average home prices since the peak, higher borrowing costs and stress test rates continue to limit buyers’ purchasing power.
Shift to Rentals: For the first time, purpose-built rentals now make up the majority of new housing starts, with ownership-oriented construction at a 30-year low. This trend is driven by federal incentives for rental construction and ongoing affordability challenges for buyers.
Laneway and Accessory Homes: Municipalities are increasingly supporting gentle densification through laneway homes and secondary suites, offering new opportunities for multi-generational living and affordable rental supply.

The renovation sector is gaining momentum, with programs like RenoMark and Adaptiv Home supporting contractors and homeowners in future-proofing homes for aging populations. October will feature Renovation Month, raising awareness and providing education for both industry and consumers.

Major Infrastructure Funding: The federal and Alberta governments have signed a landmark agreement to invest over $510 million in water, wastewater, and related infrastructure, unlocking new housing development across Alberta. At least $100 million is earmarked for rural and Indigenous communities, supporting 750 skilled trades jobs annually.
Build Canada Homes (BCH): This federal agency is accelerating affordable housing construction, with nearly 15,000 units committed and over 1,900 already under construction nationwide. BCH is also piloting modular construction to speed up delivery and reduce costs.
Housing Accelerator Fund (HAF): Additional funding is being provided to municipalities like Whistler to streamline zoning and permitting, cut red tape, and fast-track new housing.
Ontario’s Enhanced New Housing Rebate: Temporary top-ups and rebates are available for new homebuyers, further supporting affordability.

GTA & Ontario: Brampton and other GTA municipalities are struggling to meet ambitious housing targets due to infrastructure bottlenecks, high development charges, and slow approval processes. New policies are being implemented to reduce fees and incentivize construction, but challenges remain in delivering affordable ownership options.
Western Canada: Cities like Nanaimo and Winnipeg are focusing on higher-density developments and revitalizing derelict lots to address housing shortages and improve community safety.
British Columbia: Over $152 million is being invested in 54 new infrastructure projects, including innovative biosolids management and fire hall replacements, to support housing and community resilience.

Labour Shortages: The construction sector continues to face skilled labour shortages, with calls for immigration pathways better aligned to industry needs and faster credential recognition.
Infrastructure Deficits: Aging and over-capacity infrastructure, especially in electricity and water systems, is delaying new housing projects in fast-growing regions.
Regulatory Barriers: Lengthy approval times, complex regulations, and high development charges are slowing down new builds and increasing costs.
Material Costs & Tariffs: Ongoing trade tensions and tariffs on building materials add uncertainty to supply chains and pricing.

GTA Strategies is positioned to help your organization navigate these challenges and capitalize on new opportunities.